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Hike in property tax, user charges to help SMC earn Rs 50 cr more

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The Times of India 19.01.2010

Hike in property tax, user charges to help SMC earn Rs 50 cr more

SURAT: Municipal commissioner S Aparna has proposed to increase property tax by 11 per cent and user charges by about 15 per cent in 2010-11 to earn Rs 50 crore more.

Applying the area-based assessment method, the 11 per cent hike will help the SMC earn Rs 126 crore from property tax from the amended demand of Rs 103 crore. Similarly, the 15 per cent increase in user charges of water, drainage and solid waste collection will help it earn an additional Rs 27 crore. However, for the third consecutive year, the senior citizens would continue to get 5 per cent relief in their property tax.

Aparna said property tax and user charges combined make just 20 per cent amount compared to the proposed developmental expenditure. In the last three years, developmental works budget has grown by 61 per cent but the grant received by the SMC in lieu of Octroi has risen by just 10 per cent, necessitating a marginal hike in some taxes.

She said those property owners who have property smaller than 15 sq metre paid Rs 180 as taxes including Rs 120 for water and Rs 60 for drainage. After the increase, they would pay Rs 210 including Rs 140 for water and Rs 70 for drainage. Those with smaller homes than 25 sq metre paid Rs 270 and would now have to pay Rs 320. Those with homes measuring an area between 26 and 50 sq metre paid Rs 360 but would now have to pay Rs 420. Owners of houses with areas between 51 and 100 sq metre paid Rs 540 but would have to now pay Rs 630. Those with homes measuring areas between 100 and 200 metre paid Rs 720 but would now have to pay Rs 840. Owners with bigger homes than 200 sq metre area paid Rs 900 but would now have to pay Rs 1,050. The charges similarly have been raised for non-residential property too.