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.
