KMC to empower MIC to decide timeline in granting tax exemption

Kolkata: The Kolkata Municipal Corporation (KMC) has decided to amend its Act to empower the Mayor-in-Council (MIC) to determine the timeline for granting exemption in property tax in special cases.

According to KMC, several organisations/institutions often approach the civic body with prayer for relief from the burden of paying property tax which has remained unpaid for. Under Section 172 of KMC Act 1980, there are existing provisions for granting such exemptions and for which several amendments were brought about. However, a question has arisen as to whether KMC should consider the exemption for periods prior to the date of effect of the amendments of various sections in this regard.

To address this concern, the civic body felt it is necessary and expedient to again amend its Act to empower the Mayor-in-Council to ascertain the point of time from which a portion of property tax in Section 172 may be exempted. Thus, it was decided that an additional clause Section 172 (A) be included which would serve the purpose.

The proposal was recently cleared by the KMC.

Exemption by the civic body is offered for lands and buildings or portions thereof exclusively used for public charity, medical relict to or education of the poor free of charge in order to encourage services to mankind. It is also applicable for properties used for sporting activities. For vacant land or buildings used for urban forestation, educational institutions administered or aided by state government etc. It is also applicable for lands or buildings used for the Information Technology industry in the city.

It was learnt that the civic body has in recent times granted such exemption for property tax in 15 cases following a meeting of the Hardship Redressal Committee on June 28, 2024.