KMC mulls tax waiver for ICMR-NICED

Kolkata: The Kolkata Municipal Corporation (KMC) is mulling to waive the surcharge on property tax for the Indian Council of Medical Research-NICED following a request from the administration.

It was learnt that KMC has been requested by the administrative officer, NICED, for providing tax rebate on the property tax bills with effect from first quarter of 1984 to fourth quarter of 2023 by waiving 75 per cent of the surcharge in accordance with provisions under section 171 (4) of KMC Act 1980 read with KMC taxation rules 1987.

As a reason, the medical institution said it is rendering public medical service free of charge and hence is entitled to an exemption of 75 per cent under the section concerned of the KMC Act. It is learnt that the institution has requested for the exemption from payment of &5 per cent surcharge on property tax up to April, 2016 amounting to Rs 26,23,293. The proposal was placed in an MMIC meeting and was considered. Presently, it is pending approval of the KMC. Recently, KMC had cleared the proposal to waive the 75 per cent non-residential surcharge of property tax relating to the property of Indian Institute of Management (IIM), Calcutta.

According to Section 171 (4) of the Kolkata Municipal Corporation Act 1980, KMC may, where any land and land building or hut or portion thereof is used for commercial or non-residential purpose, levy a surcharge on the property tax on such land or building or hut or portion thereof at such rate not exceeding 50 per cent of the property tax as the KMC mat from time to time determine.

However, Section 172 of the Act deals with the exemption of lands and buildings from property tax. According to this Section, KMC may exempt any class or classes of lands or buildings or huts used for educational, medical, public health or cultural purposes or for purposes of sports, from payment of the surcharge and such exemption shall in no case exceed seventy per cent of the surcharge.