BHUBANESWAR: Facing flak from various quarters, the State government on Monday put Bhubaneswar Municipal Corporation (BMC)’s decision to collect holding tax at an increased rate on hold till the Orissa High Court gives its final verdict in the matter.
Housing and Urban Development Minister Pratap Jena said keeping in view the larger public interest, Chief Minister Naveen Patnaik has directed not to impose the holding tax hike in the State Capital till the government receives further order from the High Court. Earlier on the day, Congress activists staged a protest in front of the BMC office at Kalpana Square here seeking immediate withdrawal of the decision. BJP leaders had also carried out a rally three days back demanding revocation of the steep hike within a month.
Bhubaneswar MP Aparajita Sarangi welcomed the announcement. “Relieved to know that owing to resentment of the people of Bhubaneswar, the holding tax increase decision of BMC has been put on hold. Good sense prevailed. Hats off to the collective will and effort of the people of Bhubaneswar,” she tweeted. The civic body had increased the holding tax after revision of benchmark value of land cost in the Capital by the General Administration department in 2019. It had revised the benchmark value of different mouzas in the city in July 2019 with effect from February 18, 2019.
Accordingly, the corporation in its office order issued on October 1, 2019 had announced to calculate tax at the rate of 17.5 per cent of the annual value of a building taking into account 0.5 per cent of the benchmark value of the property as of April 2019.
The move, however, triggered widespread resentment as stakeholders and political parties vehemently opposed the revision stating that it will increase the holding tax manifold and severely affect the residents as well as traders, especially the small vendors and shopkeepers. A petition was also filed in the High Court seeking immediate rollback of the decision. Later, on the basis of an interim order of the High Court, the BMC had decided to collect 50 per cent of the revised holding tax for 2019-20 and 2020-21 fiscal.