Admitting that it was a mistake on its part to issue property tax bills to the historic Sabarmati Ashram, the ruling Congress in the Ahmedabad Municipal Corporation on Tuesday announced that it will provide full property tax exemption to the Sabarmati Ashram premises as well as national monuments within AMC limits.

The AMC tax department had issued property tax bills of Rs 80,618 to the Sabarmati Ashram for the assessment year 2001-02. The Ashram had, however, objected to the assessment, stating that the Ashram premises were never taxed and it was wrong for the AMC to issue property tax bills to it this year.

Mayor Himmatsingh Patel and AMC Tax Committee chairman Vinod Modi said on Tuesday evening that the AMC will provide full property tax exemption to all national monuments, including the Gandhi Ashram at Sabarmati. "If other national monuments are also being assessed for property tax, they will be exempted," Patel said.

The mayor and the tax committee chairman said that tax assessment for the Sabarmati Ashram was being made since 1990 when the BJP was in the power and this flaw has been rectified. "Serious note has been taken of this as soon as it was brought to our notice," the mayor and tax committee chairman said.

Patel added that after coming to power in October 2000, the Congress has exempted all religious properties and the Sabarmati Ashram cannot be left out. "When the Congress has floated a scheme of waiver of 18 percent penal interest on unpaid property tax for the general public, how can the Sabarmati Ashram be assessed for property tax?" the mayor asked.

He also said the AMC will pass a proposal in the next standing committee, ensuring that Gandhi Ashram is completly cleared of AMC property tax assessment.

The AMC had given the Sabarmati Ashram a property tax bill of Rs 80,618 for the asessment year 2001-02.

This property tax bill was a total of various individual units of the Ashram. The Hridykunj, Baithak, Mirakutir, Nandini Nivas, Magan Nivas, Water Tank, Guest House and the Store had got individual property tax bills which amounted to Rs 80,168. Of these units, the museum in the Gandhi Ashram got the highest individual bill of Rs 58,792.

Ashram officials said on Tuesday that the premises had never received property tax bills in the past, but this year, the AMC sent bills for over Rs 80,000. "We had filed an objection application about a month ago," officials at the Ashram said.

Tax committee officials meanwhile said that the error might have taken place as property tax bills are being given for the first time this year under the new simplified formula.