Jamshedpur local bodies set for holding tax debut

NEW REGIME Proposed three-tier holding tax rate structure will bring over 2.50 lakh households under its purview

The Dhalbhum sub-divisional administration and the three urban local bodies in the steel city on Wednesday proposed a three-tier holding tax rate structure, to bring more than 2.50 lakh households under its purview.

The tax regime will generate revenue of `20-25 crore every year, said Suraj Kumar, Dhalbhum sub-divisional officer (SDO).

Areas under Jamshedpur Notified Area Committee – one of the three urban local bodies in the city – did not have holding tax, while it was revised for the other two urban local bodies– Mango Notified Area Committee (MNAC) and Jugsalai Notified Area Committee (JNAC)–after a gap of more than 50 years, Kumar told Hindustan Times.

The last rate in Mango was about 80 paisa per sq ft 50 years ago, he said.

The proposal, however, will not be applicable for Tata lease area, he said, adding that the urban development department will be approached for a final decision on the tax regime.

The holding tax rates were set on the basis of monthly rent rates fixed by Kumar in his capacity of being the subdivisional rent controller.

Later the three special officers of JNAC, MNAC and Jugsalai Municipality notified the rates

As per conservative estimate of `500 to `1,000 annual holding tax for a 1,000 sq ft building, the annual revenue earning could be about `20 to `25 crore in the city SURAJ KUMAR, Dhalbhum sub-divisional officer

of holding tax for residential buildings across the city.

Authorities have fixed the monthly rent rate of `8.50 per sq ft in areas under JNAC, `6.50 per sq ft in area under MNAC and `7.50 per sq ft in areas that fall under the Jugsalai municipality.

This is comparatively cheaper than the rent rates of `12 per sq ft in Ranchi, `11 per sq ft in Bokaro and `10 in Hazaribagh.

“As per conservative estimate of `500 to `1,000 annual holding tax for a 1,000 sq ft building, the annual revenue earning could be about `20 to `25 crore in the city,” said Kumar.

While the rent rate will be effective immediately, the local urban bodies will send their respective holding tax structures to the state urban development department after a month-long survey and categorisation.

The tax will be effective only after the state government’s approval and rates for industrial and commercial buildings will be fixed later, officials said.