Earlier, a notice signed by the KCC Chief Officer was issued asking 52,000 house owners to pay holding tax, six times higher than assessed in 1988-'89 financial year, with effect from July this year.

The notice triggered commotion among house owners.

Khulna Nagorik Forum, Greater Khulna Development Action Coordination Committee and former leaders of opposition student organisations seized the opportunitry to threaten a movement.

Realising the gravity of the situation, City Mayor Shaikh Tayebur, now staying in Kolkata, on Wednesday asked Acting Mayor and Ward Commissioner Moniruzzaman Mamun to cancel the decision.

Meanwhile, Tax Assessment Officer Hafizur Rahman and Assistant Tax Assessment Officer Shafiqul Islam were suspended by the KCC authorities without showing any specific charge against them. Their suspension created discontent among officials and employees of the corporation.

As instructed by the City Mayor, Acting Mayor formed a three-member committee to probe into loopholes regarding assessment of new holding tax.

Headed by Water Works Department Executive Engineer Abdul Hannan, the two other members of the probe committee are Executive Engineer (Electricity) Shaikh Zahid Hossain and Administrative Officer Abdul Wadud. The body was asked to submit report within 45 days.

Acting Mayor told this correspondent, a notice to realise new holding tax was issued on September 20 without prior permission of Mayor. Departmental actions will follow against the officials involved in the foul play, he added.