Indian Express 19.01.2010
MCD for property tax hike, but gently
The Standing Committee of the Municipal Corporation of Delhi (MCD) on Monday turned down the proposal to hike property tax by a flat 5 per cent across all categories of residential properties.
This comes a day after the committee rejected the proposal to introduce professional tax for people with a monthly income of over Rs 30,000.
The committee proposed a minimal hike of 3, 2, and 1 per cent tax for residential property in different categories. It proposed a 3-per cent hike for categories A and B (at present taxed 10 per cent); 2 per cent for properties in categories C, D and E (10 per cent); and 1 per cent for F, G and H categories (6 per cent).
The MCD area is divided into eight categories, from A to H, with A housing the most upscale colonies.
For non-residential properties, the tax hike has been proposed at 5, 3, and 2 per cent, respectively, for properties in categories A and B; C, D and E; and F, G and H.
The proposals will be tabled before the MCD House. Once approved, they will then be implemented.
The committee also proposed an additional hike of 5 per cent tax for farmhouses used for residential purposes — up from present 10 per cent. Farmhouses used for non-residential purposes, which pay 10 per cent tax, would pay 20 per cent tax, it was proposed.
The Standing Committee also proposed a new 5-per cent annual tax on private power supply companies (discoms) BSES and NDPL. It also approved the proposed hike in tax for rented and self-owned luxury commercial properties — to be charged at 20 per cent and 15 per cent, respectively. Luxury commercial properties — star hotels, malls, AC gyms, swimming pools and clubs, among others — are charged 10 per cent tax at present.
The new taxes, according to Standing Committee chairperson R K Singhal, have been proposed to generate additional revenue for the civic body, and to help “balance the burden
imposed on the Corporation by the Sixth Pay Commission”.
The Standing Committee also proposed a tax of Rs 100 on every cattle head brought to the Capital from other states. The tax, Singhal said, will be collected at toll tax booths on border points.
The introduction of sanitation charges was also proposed; through this, banquet halls, community halls and other such wedding venues will have to pay Rs 5,000 each month.
The proposal says these venues will also have to pay an annual registration fee ranging between Rs 20,000 and Rs 1 lakh, depending on their capacity. The charges will account for expenses incurred in “cleaning up” these venues after each function, MCD members said.
The Standing Committee announced that all aided schools will be granted a 90-per cent rebate on total property tax payable, if they pay in a single installment in the first quarter of the fiscal: April to June.
To expand its property tax net, the MCD also proposed to begin a new survey to identify all registered and unauthorised properties in Delhi, Singhal said.
Other fill-coffers plans
* Rs 100 tax on each cow/buffalo brought from other states
* 5% rise in tax for farmhouses used for residential purposes
* 10% hike for farmhouses used for non-residential purposes
* 5% annual tax on private discoms
* Monthly Rs 5,000 sanitation charge for wedding venues
