Nov. 13: The residents of the city and the civic body have locked horns over the controversial property tax. The issue has now entered the court premises with a section of citizens filing a public interest litigation to vent their ire.

Notices received by many asking them to pay tax according to the enhanced rate have led to utter confusion.

“We have filed a PIL in the high court challenging the legality of notices served by the Guwahati Municipal Corporation (GMC) under Section 156 (3) of GMC Act 1971,” convenor of Greater Guwahati Citizens’ Coordination Committee, Subodh Sarma, told The Telegraph.

He alleged the civic body was seeking to enhance property tax by 30 per cent to 300 per cent without following the due process of law.

“The GMC has been arbitrarily raising taxes, duties and fees after 1994,” he complained.

“We had submitted various representations but failed to get any positive result. As there are no other remedies in sight, we have taken a decision to move court,” Sarma added.

The PIL was filed last week. The outcome is bound to have a bearing on the proposed revision of property tax.

The move is reminiscent of the resentment that spilled on to the streets two years back when the GMC made an attempt to implement the revised rates.

The state government had asked the GMC to keep the proposal to hike property tax in abeyance till a consensus was evolved after consultation with different citizens’ organisations.

Last year, the GMC announced that the aggrieved parties would be given an opportunity of hearing before implementation of the new rates. But in April 2005, its decision at a general council meeting to enhance property tax surprised many.

GMC collector P. Mahanta, however, said so far the new rates hadn’t been implemented. He nevertheless said the cash-strapped corporation had no other option but to go for a property tax hike for better service.

From its own sources, the corporation generates around Rs 16 crore per year while its obligatory maintenance expenditure is pegged at around Rs 32.4 crore leaving an annual deficit of Rs 16.4 crore. Out of its total earning, the lion’s share comes from property tax.

After charting out the roadmap of reforms to restore the flagging fortunes of the corporation, Dispur had decided to improve the tax collection system.

As a first step towards this direction, the state government wants to plug certain loopholes in the existing tax collection system to bring more revenue to GMC coffers.

The government is contemplating to introduce unit area method under which different rates of property tax will be charged considering the level of civic amenities.

At present, 7.5 per cent of the total value of land and building is collected as property tax by the GMC annually.

“However, only time will tell whether the government will be able to withstand public pressure and go ahead with its decision,” a GMC official said.