Various organisations, including Karnataka Chamber of Commerce and Industry (KCCI), have taken exception to the Hubballi-Dharwad Municipal Corporation’s move to hike property tax suddenly. Much to the shock of the residents, HDMC has increased property tax by 20 % to 30 % with retrospective effect from April 1. While tax for residential buildings has been increased by 20 %, that of commercial buildings has been hiked by 30 %. Property tax for all types of open land too has seen a 30 % hike. Not only that, the municipal corporation has asked those who have already paid property tax to pay the difference amount.
Expressing shock over the move that too at a time when people were facing hardships due to the COVID-19-induced lockdown which has hit economic activities hard, the organisations have appealed to the government to immediately withdraw the hike.
The Congress has already submitted a memorandum to the Deputy Commissioner of Dharwad condemning the move and seeking its immediate withdrawal. Criticising the move, Hubballi-Dharwad East MLA Prasad Abbayya has termed the move as unconstitutional, in the absence of an elected body. The tenure of the municipal council has ended and the elections have been delayed as reservation for the top posts has been questioned in a court of law. Mr. Abbayya has, in fact, sought discounts in property tax apart from withdrawing the hike.
On Wednesday, Karnatak Chamber of Commerce and Industry, led by its president Mahendra Ladhad, submitted a memorandum to district-in-charge Minister Jagadish Shettar seeking the immediate withdrawal of the tax hike.
In the memorandum, KCCI has termed the hike as unprecedented and unwanted. At a time when people were going through difficulties and were being forced to shut down businesses, increase in tax was like rubbing salt into their wounds, it has said in the memorandum.
KCCI has also demanded continuation of the previous tax rates and a 5 % rebate for those who pay taxes before July 31.
Meanwhile, Aam Aadmi Party (AAP) has strongly condemned the tax hike. AAP district president Santosh Naragund said that at a time when people from all walks of life were experiencing loss in one way or the other due to the lockdown, such a hike was unwarranted.
