Urban News

The Hindu       24.12.2010

Toll tax to go up for commercial vehicles entering Delhi

NEW DELHI: To neutralise the impact of increase in wholesale price index and to generate additional revenue, the Municipal Corporation of Delhi has approved a proposal to increase the toll tax rates on commercial vehicles entering the city by 17 to 28 per cent under different categories.

The decision has been taken at a meeting of the civic body's Standing Committee despite strong protests by the opposition Congress which alleged that the BJP-led MCD was hiking rates in an “unprecedented manner”. The decision would, however, come into effect only from May next year when fresh tenders would be floated after expiry of the contract for the current company roped in by the MCD to collect toll tax on its behalf.An MCD official said: “The civic body, which has outsourced collection of toll tax, plans to float a new tender for awarding contract for it under the new rates. The new tender will commence from May 16, 2011, and the rates would be applicable from that time at all toll points within the jurisdiction of Delhi.”

Last time the toll tax rates were increased in the Capital was in May 2008. In the last two years, MCD has generated revenue of close to Rs.200 crore from toll tax. After the approval of the hike proposal, the civic body expects an additional Rs.40 crore from the tax annually.Municipal Commissioner K. S. Mehra said: “This proposal to increase the toll tax is linked to the wholesale price index which has increased by 17 per cent. To neutralise its effect and ensure that there is no obstruction in fixing the minimum reserve price for process of tendering to be undertaken in the coming few months for toll tax collection this proposal was presented before the Standing Committee. We have ensured that the increase in rates is well within the limits prescribed to us by the Delhi Government.”

As per the proposal, taxi, tempo, Tata-407 and other such type of commercial vehicles which are presently paying Rs.35 as toll tax per entry would have to shell out Rs.45 and bus, truck, Nissan, Tata-709 or canters and other such vehicles which are paying Rs.70 at present would have to pay Rs.85. The rate for six-wheel truck has also been hiked from Rs.140 to Rs.165, that for 10-wheel truck from Rs.280 to Rs.330 and for 14-wheel truck from Rs.700 to Rs.820. Accordingly, rates of monthly passes have also been increased. The MCD, however, clarified that the hike would not be applicable for non-commercial vehicles, ambulances, fire-fighting vehicles, police vehicles, government vehicles having red and amber lights, defence vehicles and hearses.

The Hindu       24.12.2010

Builders for rationalisation of tax system

KURNOOL: Confederation of Real Estate Developers Association of India (CREDAI) urged the government to rationalise tax system affecting builders, property developers and property purchasers.

P. Ranganath Reddy, secretary of Kurnool branch of the association, who was among the delegation at the national conference at New Delhi recently, said the builders representatives expressed unhappiness over multiple taxation on the construction industry.

The builders pay a tax of 11 per cent on purchase of land and the same property attracts another 11 per cent tax when structures are transferred to the customers. In fact, the second spell of registration charges also includes the land cost leading to double taxation.

The builders asked for single point taxation at the time of approval of building plan and exclusion of land cost for the second spell of registration. The builders pay service tax, VAT and Labour cess at different places which could be credited at a single point. The Central government is understood to have considered the plea for tax rationalisation valid.

The government too agreed to the view that the infrastructure and realty would drive the economy in the coming decade leading to creation of huge employment and business in view of the urbanisation of the country.

A study conducted by an agency instituted by the government noted that 590 million people would be living in urban India by 2030 and the size of urban middle class would increase to 91 million from the present 22 million. The government asked the association to explore the possibilities of widening the public and private partnership platform.

Also, the builders requested the government to streamline the ways for transfer of technology from the Building Materials and Technology Promotion Council as the private sector is willing to adopt the technology.

Mr. Ranganath Reddy said in tune with the national trends, the migration to Kurnool city from rural areas is heavy. The rental values went up several times indicating shortage of housing in the city.