Jamshedpur, July 31: Civic bodies of Mango and Jugsalai have started assessment of the holding taxes in their respective areas.

The state urban development department has given directives to the authorities of both the civic bodies ? Mango Notified Area Committee (MNAC) and Jugsalai Municipality ? for assessment of holding tax structure.

The assessment of the municipal taxes, which includes holding taxes for housing and commercial structures, are pending since 1978-79 MNAC and since 1997 in Jugsalai municipality.

For the Jamshedpur Notified Area Committee (JNAC), majority of whose area falls under different schedules of land leased to the Tata Steel, the Jamshedpur Utilities and Services Comapny (Jusco) charges the municipal taxes from the inhabitants.

Ganesh Kumar, special officer of JNAC, said the new assessment of the holding taxes will be carried out keeping in mind the 2001 census figures.

?The population of the area according to the census figures of 2001 is 1.66 lakh. But still we have been getting municipal taxes from only about 7,000 households. According to the new census, the total number of households should increase by 30,000,? said Kumar to The Telegraph.

The municipal body used to charge flat rates depending on the category of housing and commercial plots. The housing structures were divided in to four categories ? Ist grade, IInd grade, IIIrd grade and IVth grade.

The prevalent holding tax rates per annum is Rs 80, Rs 60, Rs 40 and Rs 12 respectively. For commercial plots, three categories were marked ? grade I, grade II and grade III. The existing rates (since 1978-79) were Rs 120, Rs 100 and Rs 80 respectively.

In spite of very subsidised rates, the MNAC authorities were unable to collect the taxes. ?Last financial year, against the demand of about Rs 6 lakh, only a sum of Rs 2.69 lakh were realised. The system needs a complete overhauling,? said East Singhbhum deputy commissioner Nitin Madan Kulkarni.

The MNAC authorities have been asked by the government to send a letter requesting permission to assess the holding taxes in their area.

The new rates, whose proposal has been already sent to the state urban development ministry encompasses fixation of holding taxes depending on the category of the land and area. The holding taxes would now be charged depending on the area of the plot, either housing or commercial.

The proposal sent by the MNAC authorities to the state government mentions that 29.25 per cent of the plot value will be charged as holding tax.

The civic authorities have proposed the new holding taxes in accordance with the rates proposed by the Ranchi Municipal Corporation.