The north corporation commissioner, Madhup Vyas, in the budget for the next financial year presented on Friday introduced several new taxes and also raised property tax rates by 1-2 per cent to generate revenue to meet the increased debt of Rs 750 crore and make the civic body financially self-sufficient
This is the only visible way out of our current state,” Vyas said. He also appealed for the approval of the Fourth Municipal Valuation Committee report, which is expected to increase the corporation’s income by 33 per cent. An education cess of 1 per cent on the total value of property tax along with two news types of taxes, professional and betterment was also moved by him. “Considering the current financial state, I am proposing a marginal increase of 1% property tax for properties in A to E category colonies and 2 per cent hike for F, G and H category colonies. For commercial properties above 150 sq m, tax rates will be increased from 15 per cent to 20 per cent,” Vyas said. He justified the hike saying the rates have not been revised since 2004 when the unit area method for property tax calculation was introduced.
The north corporation is expected to generate Rs 950 crore as property tax, an increase of Rs 100 crore. Vyas said he was hopeful of the new property tax rates getting approved as they were endorsed by the BJP-led standing committee on November 16. The commissioner also justified the introduction of betterment tax and professional tax saying they have been recommended by both the second and third Delhi finance commission so that the reliance of the corporation on Delhi government can be reduced. Betterment tax will be imposed at the rate of 15 per cent on the annual property value. “This will be in lieu of development, infrastructure improvement and other services that increase the value of properties. We expect revenue of Rs 450 crore from this source,” Vyas said.
Courtesy/By: Shubham Mathur
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09 Dec 2018
