In an apparent first-of-its-kind action by local authorities, the civic body in Agra, Uttar Pradesh, has asked the Archaeological Survey of India (ASI) to pay about Rs 1.5 lakh as property tax on the Taj Mahal, along with nearly Rs 2 crore as water tax. But is it well within its legal rights to have imposed property tax on a protected monument? Here’s what legal experts have to say.
A report by PTI said that ASI has also been asked to pay Rs 5 crore service tax for the Agra Fort and Rs 1.40 lakh property tax for another monument, the tomb of Itmad-ud-Daulah.
While some legal experts are of the view that property tax cannot be charged on protected monuments as the municipality is not engaged in ‘improvement on the land’, others say that it may well be within its rights to do so for services rendered.
A conservation consultant points out that while he has come across incidents of protected monuments being charged for electricity and water supply by the municipality, he’s not aware of property tax being imposed on them.
“While I am aware of electricity and water charges that have to be paid to the municipality for the services provided, I am not aware of property tax being imposed on monuments,” AGK Menon, an architect, urban planner and conservation consultant, told Moneycontrol.
Legal experts said that exemption on levy of property tax on a monument is a state prerogative.
“Granting exemption on levy of property tax is a state prerogative. Generally, Indian states including Uttar Pradesh (vide Section 177 of the Uttar Pradesh Municipal Corporation Act, 1959) have granted exemption to ancient monuments from payment of property tax, subject to any contrary direction of the state government in respect of any such monument. Accordingly, Taj Mahal being recognised as an ancient and protected monument by the Archaeological Survey of India (ASI), Property Tax will not be leviable,” said Gourav Sogani, Partner, Economic Laws Practice.
Legal experts also point out that property tax is charged towards improvements on the land. For water and electricity, separate water and electricity taxes are imposed.
Santosh Pandey, CEO, Sarthak Advocates and Solicitors, a Delhi-based law firm, is of the opinion that property tax is not applicable on ASI-protected monuments because property tax is paid towards improvements on the land, and in this case the ASI is maintaining the structure. It does not include water charges or electricity supply charges as water tax and electricity tax are levied separately.
However, Akash Vashishtha, a heritage lawyer and expert, is of the opinion that this is perhaps the first time that such an issue has come up. This is because all municipal corporations have, of late, been identifying structures in cities managed by them through Google satellite images so as to bring them under the property tax ambit to enhance their revenue.
“Charging a monument is legal under the law as corporations provide both water as well as sewerage facilities to these structures and these services are chargeable. This could well be another source of enlarging their scope of revenue collection. In this case you also need to factor in the fact that ASI is earning revenue through the sale of tickets and maintaining the heritage structure through those funds,” he pointed out.
He states that one can assume that a monument is like any other commercial structure that is fetching revenue. Therefore, for any facilities provided by the municipality, such as laying and maintaining of sewerage network or water facilities, some costs are incurred, for which property tax can be levied.
So, will the same provision hold for private heritage havelis?
A heritage haveli, which is a private property, will be levied property tax just as any other residential property. However, if the haveli is protected and maintained by a government agency, then no property tax can be imposed, say experts.
According to media reports, the notice from Agra Nagar Nigam (Agra Municipal Corporation) said the bills are for the financial years 2021-22 and 2022-23 and that ASI has been given 15 days to clear the dues, failing which the property would be “attached”, media reports said.
However, Municipal Commissioner Nikhil T Funde said he was unaware of tax-related proceedings related to the Taj Mahal. “Fresh notices are being issued based on the state-wide geographic information system (GIS) survey conducted for calculation of taxes,” Funde told the Times of India.
Funde was later quoted as saying by PTI that notices have been issued to several buildings and those eligible will be given relief.
Meanwhile, ASI officials said the notice may have been sent by mistake, as house and water taxes are not applicable on monuments. The Taj Mahal was declared a protected monument in 1920, noted ASI, and no taxes were paid on it even during the days of British rule.
ASI Superintending Archaeologist Raj Kumar Patel, said, "Property tax is not applicable on monuments. We are also not liable to pay taxes for water as there is no commercial use of it. Water is used to maintain greenery within the premises. Notices related to water and property tax for Taj Mahal have been received for the first time. It could have been sent by mistake," he was quoted as saying.
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