BMC to hike holding tax in Odisha Capital

Odisha Sun Times Bureau
Bhubaneswar, Aug 1:

People having  a house inside Bhubaneswar Municipal Corporation (BMC) limits would soon have to cough up more by way of holding tax. A decision to this effect was taken at the monthly council meeting of BMC yesterday.

A committee will be formed to work out the new tax structure and its recommendation would be sent to the Urban Development Department for approval. The new tax structure would be implemented after the approval of the UD Department. A proposal on this count was approved at yesterday’s meeting.

It may be noted that BMC continues to collect holding tax based on 1978 rates and no revision has been made to it in more than three decades. Even though BMC considered implementing new rates back in 2010, the decision was stayed by the High Court.

BMC has taken the step to hike the tax again after High Court delivered its verdict.

The BMC authorities point to the fact that the expenses of BMC continue to shoot up with its rising periphery, leaving it with little choice but to hike holding tax, one of the major sources of revenue.

The tax, however, would be increased rationally based on the recommendation of the committee, which would be formed as per guidelines of section-215 of Odisha Municipal Corporation Act-2003. The committee would work under the Chairmanship of a judicial officer and the BDA engineer, Additional Director of SUDA and Director of Bhubaneswar DSR would be members in it, a BMC official said.