The Hindu 13.01.2011
NDMC planning new taxes
To meet increased expenditure on its new schemes
Residents living in the New Delhi Municipal Council area may have to brace themselves up for a slew of newly proposed taxes by the civic body including education cess and a tax on trades.
According to the NDMC, the new taxes are being levied to meet increased expenditure on its proposed schemes and generate funds for providing better maintenance and facilities in the markets in its area as well as in view of the increased value of land in NDMC area due “development and improvements works” in the area.
The proposal mulling the imposition of the new tax schedule for this fiscal would be tabled in the civic body's monthly council meeting to be held on Friday.
The proposal comes in the view of the NDMC Act under which the Council has to determine the schedule of taxes for the year 2011-12 on or before February 15 this year. These taxes are being proposed either under the head of obligatory taxes or discretionary taxes mandated under the NDMC Act.
While no increase in the rate of tax on consumption, sale or electricity or on sale of surplus power or the mode of collection is suggested beyond the existing five per cent, however, the civic body is mulling over levying of a new education cess citing the need for additional funds by the NDMC for providing quality education, infrastructure, computer facilities for its newly-proposed ‘Lakshya' scheme that envisages provisioning of coaching facilities to select students for appearing in competitive engineering and medical entrance exams.
However, according to the civic body, the case for levy of education cess for providing education other than primary education would be examined further and a report on the same would be submitted for the Council's consideration to take a final decision on the levy of this cess. In addition, a new tax on trades and a new betterment tax on increase in urban land value due to execution of development or improvement works in NDMC area have also been mooted by the civic body.
Better maintenance
An NDMC official said: “At present levy of tax on professions, callings and employments is not suggested. However levy of tax on trades has been suggested to meet expenditure on providing better maintenance and facilities in the markets.”
No change is proposed on the existing property tax, tax on vehicles and animals, theatre tax, tax on advertisements, duty on transfer of property, tax on buildings payable along with applications for sanction of the building plan.
Meanwhile, the civic body has also proposed rebates in property tax for certain properties paying property tax on Rateable Value (RV) determined under Annual Rent Bye-Laws, 2009.
The NDMC official said: “In view of the fact that some of the residential property owners have to pay a higher tax under the RV By-Laws 2009, the Council may consider giving a 50 per cent rebate to 3,279 residential properties having a RV of up to five lakh. In addition a rebate of a maximum of 20 per cent is also being mulled for the occupiers of the shops in Connaught Place area who are paying property tax under By-Laws of 2009 and had to face inconvenience during the CP re-development work.” This rebate would not be applicable to office and commercial complexes and would be available for 2010-11 and 2011-12.
A rebate of 40 per cent and 20 per cent is also proposed for aided schools and colleges and unaided schools respectively for the portion not used for commercial purposes.
