The Financial Express 09.12.2010
MCD proposes 5% hike in house taxA 5% hike in property tax rates in the capital was among several revenue-earning measures proposed by the municipal commissioner who unveiled a Rs 6,364.43-crore Budget for MCD for 2011-12 fiscal on Wednesday.
The ruling BJP in MCD, however, rejected outright the proposal to increase taxes, with chairman of Standing Committee Yogender Chandolia asserting that “even a debate will not be held” on the issue.
Presenting the Revised Budget Estimates for 2010-2011 and the Budget Estimates for 2011-2012 at a special meeting of the MCD Standing Committee, commissioner KS Mehra said the money will be mainly spent on green initiatives, roads, parking projects, education and hospital improvement.
Noting that the MCD is under a debt of Rs 2,867 crore, Mehra said there is a dire need for improving financial management and increasing revenue.
“The property tax rates are proposed to be increased by 5% uniformly in all categories except Airports Authority of India properties,...
He proposed to increase tax rates for residential properties from existing 12 to 17% for A and B categories, from 11 to 16% for C, D and E categories and from 7 to 12% for F,G and H categories.
MCD has divided properties into eight categories on the basis of areas where they are located. The hike has also been mooted for residential properties of government companies and statutory corporations, non-residential properties of all categories and residential farm houses. No change is proposed for special non-residential properties like hotels of three star and above, malls, etc as they are already giving the highest possible 20% tax, Mehra said....
