VIGILANCE COUNCIL THIRUVALLA Vs. THIRUVALLA MUNICIPALITY

JUDGEMENT

(1.) Petitioners are public sector organisation and resident of Thiruvalla Municipality. They have objected to the proposal of the Municipality to increase the rate of property tax from 13% to 15%. The Municipality in reply has stated that the property tax in Thiruvalla Municipality was collected at the same rate of 13% over since 1978-79, and the Municipality is presently faced with heavy financial liabilities hampering the development activities. The OP is against this order.

(2.) The petitioners case is that enhancement of rate of tax is excessive and the Municipalities is having sufficient funds to meet requirements.

(3.) Learned Counsel appearing on behalf of the petitioners strenuously pleaded that the Municipality has no jurisdiction to enhance the rate of tax in between the general revisions by referring to S.238 of the Kerala Municipality Act. According to this the property tax will be assessed once in every 5 years and therefore the same principle should apply for the fixation of the rate of tax. She also submitted that the Municipality has no authority to revise the tax without prior permission of the Government. Sub-s. 3 of S.279 states that the Council shall not alter the rate of tax except with the previous sanction from the Government. According to her general revision for the annual value was in the year 1994 and the rate of tax can also be revised only after 5 years.