Prayagraj: The 10 sewage treatment plants (STPs), which process wastewater generated across Prayagraj, have come under the property tax net for the first time, with the Municipal Corporation issuing a Rs 26 crore tax notice to the Jal Nigam. The move has triggered discussions within the Jal Nigam, which is now considering seeking the state govt’s opinion on the tax liability.The Municipal Corporation has assessed all 10 STPs located within its jurisdiction and determined property tax on the land and buildings associated with the plants. Officials said the assessment was carried out in accordance with prevailing rules, under which properties located within the municipal limits are liable for property tax.The civic body said the STPs were no different from several other govt properties in the city that have already been assessed for property tax. Chief tax assessment officer of the Municipal Corporation, Sanjay Mangai, said that the property tax has been determined on several govt offices located within the municipal limits, and even the Municipal Corporation itself comes under the property tax regime. “Like other govt offices, notices have been issued to sewage treatment plants for property tax,” he said.The Rs 26 crore demand, however, has left Jal Nigam officials in a dilemma. They are of the view that the STPs are public projects primarily aimed at serving public interest and protecting the environment. The department is therefore expected to seek the state govt’s guidance on whether such facilities should be liable to pay property tax.Officials said a decision on payment of the tax or exploring other legal options would be taken only after receiving directions from the govt.The Municipal Corporation’s action has also raised questions over the broader policy of imposing property tax on govt-owned public utility projects. The issue could have implications for other public infrastructure located within municipal limits if similar assessments are undertaken in future.
