Varanasi MC clarifies: No property tax on temples, monasteries

The issue of the Municipal Corporation levying taxes on temples and monasteries in the holy city of Kashi has been making headlines these days.

On Thursday, Municipal Commissioner Himanshu Nagpal clarified the situation, stating that the notices were issued due to an error, which is being rectified.

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Property tax will be zero for all places of worship, temples, and monasteries. No action is being proposed against them.

Public Relations Officer Sandeep Srivastava said that the Municipal Commissioner has issued a clarification regarding the tax levied on temples and monasteries.

Following government directives, a unified property tax bill is being generated for the first time, which includes property tax, water tax, and sewer tax.

This process is being carried out for the entire city of Varanasi. Four months remain in the financial year. Notices are being sent to over 20,000 buildings regarding outstanding dues. On December 7, an objection was raised by a temple-monastery. The Municipal Corporation immediately conducted an investigation and exempted it from property tax.

Sections 175 and 177 of the Municipal Corporation Act, 1959, state that property tax can be waived for any place of worship. However, it is not exempt from water tax and sewer tax. However, a fifty percent reduction will now be applied to water and sewer taxes as well.

In the first phase, forty temples and monasteries, seven mosques, and one gurdwara in the Kotwali zone, where the issue arose, have been exempted from property tax. The Municipal Corporation Act does not mention exemption from water and sewer taxes, but a fifty percent reduction is being implemented.