NDMC proposes 3% hike in property tax
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NDMC proposes 3% hike in property tax

Last Updated: Wednesday, December 05, 2012, 20:26
 
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NDMC proposes 3% hike in property tax
New Delhi: People residing in New Delhi Municipal Corporation areas may end up paying double the property tax from next fiscal with the civic body on Wednesday proposing a three percent hike and increase in valuation of property.

They may also need to shell out more money for parking in localities under the jurisdiction of NDMC with the budget for 2013-14 coming up with a proposal for a new parking fee regime of hourly billing system in place of the existing one.

The new budget also has provisions for setting up a medical college, the first by a civic body in the capital, a Mahila Haat to encourage women entrepreneurs and 2,000 car parking lots.

Reacting to the budget proposals, Leader of House of North Municipal Corporation, Mahender Nagpal (BJP) said the proposal to increase property tax will not be passed by the civic body as his party had promised in its manifesto.

Unveiling budget proposals for 2013-14, NDMC Commissioner P K Gupta said the three percent hike in property tax will result in an extra income of Rs 200 crore in the next fiscal and justified the measure noting that there was no increase in this regard since 2003-04.

He said the Municipal Evaluation Committee had suggested increase in tax and valuation of property. "The value of the property, vacant or constructed buildings, should be increased as it was last hiked in 2003," Gupta said.

According to the budget proposals, residential properties in A and B category colonies have been increased to 15 percent from 12 percent. For C, D and E colonies, it has been increased to 15 percent from 11 percent. F, G and H colonies will have to pay ten percent from seven percent.

A senior NDMC official said a citizen may end up paying almost double the property tax he is paying now.

"The rate of increase is three percent. But we are also planning to increase the value of the property by 1.7 times and this in effect will mean that the citizen may end up paying near about double the tax he is paying now," he said.

Illustrating an example, he said now one has to pay Rs 12,000 for a Rs one lakh property. But if the proposal is accepted, the value of property will rise to Rs 1.7 lakh and a property tax at 15 percent would mean that he has to shell around Rs 25,000.

The proposal, if passed, could fetch an extra Rs 200 crore for the NDMC in the next fiscal.

The NDMC had also proposed new hourly car parking rates, which includes 50 percent additional charges in peak hours between 5pm to 9pm.

According to NDMC proposals, people may have to shell out Rs 20 for parking a car for one hour, Rs 50 from second to sixth hour and from the seventh to 12th hour, car owners need to shell out Rs 75. Earlier, car parking rates were Rs 10 for 10 hours.

"An IT based comprehensive parking policy is the need of the hour and NDMC has prepared a draft for the same. This also envisages facility to citizen with systematic parking. A smart card system is also proposed to be introduced," he said.

"NDMC is considering recommendations of environmentalists to promote public transport and has proposed new parking rates based on hourly basis. It also proposes 50 percent additional charges in peak hours i.e. 5 pm to 9 pm," he said.

In the budget proposals, it has been also proposed that 1,978 new car parking spaces will be created in the current year and 2,000 car parking spaces will be approved in the next financial year.

The budget proposals also highlighted the major expenses of NDMC which include Rs 101 crore on old age pension, Rs 628 crore on education and Rs 597 crore on sanitation.

It will also spend Rs 487 crore on health related services and Rs 499 crore on public works and lightning.

In sanitation sector, he said in the current year NDMC spent Rs 5.10 crore for procuring equipment and gadgets to improve sanitation. Rs 20-crore has been allocated for reclamation of Bhalsava Landfill Site.

It has also been proposed to set up a Waste to Energy Plant at Narela-Bawana with a capacity of 36 MW of power. In the first phase, 1300 MT of garbage would be disposed to generate 13 MW of electricity.

A Mahila Haat dedicated to citizens especially women will be developed in an area of 6000 square metre at a cost of Rs two crore.

In the health sector, the budget proposes to set up a medical college at Hindu Rao Hospital which would be named as North Delhi Municipal Corporation Medical College.

"Departments like Anatomy, Physiology, Bio-chemistry and Preventive and Social Medicine etc are being created for medical college. There would be 50 seats to begin with and would be extended up to 150 in future," Gupta said.

For the next financial year, the budget proposal provided for Rs 146 crore for the construction of 161 km of road, 56 KM of long drain, 20 parks and 10 community halls.

According to NDMC proposals, people may have to shell out Rs 20 for parking a car for one hour, Rs 50 from second to sixth hour and from the seventh to 12th hour, car owners need to shell out Rs 75. Earlier, car parking rates were Rs 10 for 10 hours.

"An IT based comprehensive parking policy is the need of the hour and NDMC has prepared a draft for the same. This also envisages facility to citizen with systematic parking. A smart card system is also proposed to be introduced," he said.

"NDMC is considering recommendations of environmentalists to promote public transport and has proposed new parking rates based on hourly basis. It also proposes 50 percent additional charges in peak hours ie 5 pm to 9 pm," he said.

In the budget proposals, it has been also proposed that 1,978 new car parking spaces will be created in the current year and 2,000 car parking spaces will be approved in the next financial year.

The budget proposals also highlighted the major expenses of NDMC which include Rs 101 crore on old age pension, Rs 628 crore on education and Rs 597 crore on sanitation.

It will also spend Rs 487 crore on health related services and Rs 499 crore on public works and lightning.

In sanitation sector, he said in the current year NDMC spent Rs 5.10 crore for procuring equipment and gadgets to improve sanitation. Rs 20-crore has been allocated for reclamation of Bhalsava Landfill Site.

It has also been proposed to set up a Waste to Energy Plant at Narela-Bawana with a capacity of 36 MW of power. In the first phase, 1300 MT of garbage would be disposed to generate 13 MW of electricity.

A Mahila Haat dedicated to citizens especially women will be developed in an area of 6000 square metre at a cost of Rs two crore.

In the health sector, the budget proposes to set up a medical college at Hindu Rao Hospital which would be named as North Delhi Municipal Corporation Medical College.

"Departments like Anatomy, Physiology, Bio-chemistry and Preventive and Social Medicine etc are being created for medical college. There would be 50 seats to begin with and would be extended up to 150 in future," Gupta said.

For the next financial year, the budget proposal provided for Rs 146 crore for the construction of 161 km of road, 56 KM of long drain, 20 parks and 10 community halls.

PTI


First Published: Wednesday, December 05, 2012, 19:40


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