MCD proposes hike in property tax
The Municipal Corporation of Delhi (MCD) Monday finalised the budget estimates for 2010-11, proposing a hike in tax on both residential and non-residential properties.
New Delhi: The Municipal Corporation of Delhi (MCD) Monday finalised the budget estimates for 2010-11, proposing a hike in tax on both residential and non-residential properties.
The Bharatiya Janata Party (BJP)-led agency, however, scrapped the idea of professional tax on those with an income above Rs.30,000 a month proposed by MCD Commissioner KS Mehra in December.
The budget estimates were finalised by MCD`s standing committee chairman Ram Kishan Singhal at a meeting Monday.
"MCD looks after nearly 95 percent area of the capital. The entire area under MCD has been divided into eight categories - A to H, wherein category A stands for the upscale and posh areas," said a MCD official.
According to MCD, tax on residential properties in categories A and B will go up from 10 to 13 percent, in C, D and E from 10 to 12 percent, and in categories F, G and H from 6 to 7 percent.
Tax on non-residential properties in groups A and B has been increased from 10 to 15 percent, in C, D and E from 10 to 13 percent and in categories F, G and H from 10 to 12 percent.
MCD has proposed a tax of Rs.100 per cattle brought into its area.
MCD has decided to double the property tax levied on hotels of two star category and above, guest houses, banquet halls, commercial complexes, malls multiplexes, petrol pumps, fuel filling, CNG/gas filling stations, hotels with bar facilities and coaching centres training more than 50 students -- all from 10 to 20 percent.
"The hike in these taxes will only come into affect after these proposals are passed by the house," the MCD official said.
Opposition leader Jai Kishan Sharma of the Congress expressed disappointment over the budget proposals.