Bhubaneswar: People who have deposited holding tax at enhanced rates will get refunds or adjustments as per the order of the court, informed Bhubaneswar Municipal Corporation (BMC) Commissioner Prem Chandra Chaudhary.
“There is a complete procedure for adjustment of the excess amount if on the basis of a court order it is found that one has paid in excess. It can be adjusted against holding tax due on them in the coming years otherwise if there is a court or government order for refunding the amount in excess of the rate arrived at, we will take that route also,” explained Chaudhary speaking to reporters here today.
He said the enhanced holding tax rate has been suspended for the time being on instructions from the government and a decision in this regard will be taken on the basis of the court order when it arrives.
The BMC Commissioner informed that holding tax rates have never been increased in Bhubaneswar since 1998.
“In 2010 when there was a move to bring in property tax, a case was registered in the court and it remained suspended for a pretty long time. In 2018 the court passed an order that it be implemented after due consultation. A consultation was held and the court in its interim order allowed for its implementation and collection at above 50%,” he said.
Chaudhary pointed out that there was no change in the formula for the calculation of holding tax for 20 years; the only issue was that BMC had taken the current benchmark valuation.
He added that BMC will abide by the Court’s verdict when it comes or the instructions of the government.
“How can it be possible to provide better service if our revenue does not increase,” he pointed out.
Worth mentioning, Housing and Urban Development Minister Pratap Jena had on Monday informed that keeping in view the sentiments of the general public Chief Minister Naveen Patnaik has directed to put on hold BMC’s decision to hike holding tax until the final verdict of the Orissa High Court in the matter.