The Times of India 05.02.2010
Only Rs 13.73 crore tax hike approved
SURAT: Bowing to public pressure and demand of its elected representatives, the ruling BJP has decided to reduce the proposed tax hike rate as suggested in the 2010 draft budget, which was recently presented by Surat municipal commissioner.
After a three-day discussion, the standing committee of Surat Municipal Corporation (SMC) has decided to slash the proposed tax hike to nearly 30 per cent of the proposed amount and left the residential category untouched in the election year. Against the proposed increase of Rs 53.19 crore in the draft budget by way of hike in property tax by 11 per cent and 15 per cent in user charges, the standing committee rejected the proposal of Rs 39.36 crore and only approved a raise in tax rates totalling Rs 13.73 crore.
Standing committee chairman Mukesh Dalal said, "We thought the proposed tax hike will not find favour with the common man in the golden jubilee year of the state. We did not want the common man to suffer any hardships due to increase in taxes. Therefore, we have decided to slash the hike proposals by Rs 40 crore."
As per the standing committee's decision, the city will see only Rs 13.73 crore of tax hike during 2010-11. The municipal commissioner in her proposed budget had estimated Rs 256.44 crore from user charges and taxes, including the hike of Rs 53.19 crore. The standing committee has brought that figure down to Rs 216.98 crore by slashing Rs 39.36 crore of proposed taxes.
The amendments have left out all the resident owners from the hike. There is only a marginal increase in non-residential property owners' taxes, reduction in tenant used property tax from the proposed limit and the user charges for non-resident properties have also been slashed.
"We are aware that tax hike is needed, but we can't overlook the problems faced by common people. We have tried our best to balance things with the objective that people of the city don't have to suffer from high taxes," mayor Ranjit Gilitwala said.
