The Jammu and Kashmir government on Thursday said there has been no arbitrary hike of 400–500 per cent in Shop Tax and Trade Tax imposed on traders in Srinagar, clarifying that the tax structure was last revised in 2012, after nearly four decades.
Replying to an Unstarred Assembly Question by MLA Tanvir Sadiq regarding uniform taxation, the Housing and Urban Development Department, said that before 2012, Srinagar Municipal Corporation (SMC) was levying nominal Shop Tax and Trade Tax not exceeding Rs 50 per annum under a tariff structure that had remained in force for nearly three to four decades.
The government said the tax structure was rationalised and revised in 2012, with rates varying according to the nature and category of trade. “Since the 2012 revision, no further enhancement in Shop Tax or Trade Tax has been undertaken, and business establishments continue to pay taxes as per the revised structure,” it said.
On the issue of classification, the government informed that SMC has categorised markets into Shehri-e-Khaas and Civil Lines for assessment purposes, while different trades have been grouped into various categories for Trade Tax assessment. It added that the rationalisation exercise carried out after 2012 classified Shop Tax into two market categories and restructured Trade Tax into multiple trade-based categories.
Responding to concerns about uniform taxation, the government clarified that there is variation in taxes imposed on business establishments operating in Lal Chowk and Shehri-e-Khaas. It stated that taxes are not uniformly charged across all, but differ based on location and category.
The reply further indicated that the classification system aims to align taxation with the nature, location, and category of businesses, thereby addressing disparities in commercial value and earning capacity across different areas of Srinagar.
