Varanasi Resolves Religious Tax hiccup

The Varanasi Municipal Corporation faced backlash from the saint community after mistakenly sending attachment notices for tax dues to religious institutions. Commissioner Himanshu Nagpal assured these errors, arising from billing changes, will not lead to any attachments. He reaffirmed religious entities’ tax exemptions.

The Varanasi Municipal Corporation faced significant backlash after mistakenly issuing attachment notices to mutts and temples over outstanding tax dues. Commissioner Himanshu Nagpal clarified that these errors, triggered by recent technical alterations in the billing system, will not result in enforcements against religious institutions.

Nagpal emphasized that under sections 175 and 177 of the Municipal Corporation Act, house tax is not applicable to religious places. He assured that all revenue inspectors and zonal officers have been directed to avoid issuing bills without proper verification, pledging immediate correction of any identified errors.

As per a 2010 government order, religious and charitable institutions are entitled to a 50% exemption on water and sewerage taxes. Mahant Balak Devacharya highlighted that this is the first instance in India's history where attachment notices were served to religious establishments.