Live near Metro? Pay more tax

People living close to Metro corridors in the country could soon end up paying more tax.

New Delhi: People living close to Metro
corridors in the country could soon end up paying more tax
with the Centre asking state governments to explore the option
of imposing dedicated tax as part of innovative methods to
finance such modern transport projects.

The Union Urban Development Ministry has written letters
to state governments seeking their opinion on levying
additional taxes on land transactions near the Metro corridors
and a few states like Tamil Nadu and Andhra have replied in
the positive.

"Metro is a very costly system...The difficult part is to
meet the expenses and many more cities in the country are
coming up with Metro projects.

As a result of this, we have to
go for innovative sources of revenue generation and one is the
levying of taxes," Urban Development Secretary Sudhira Krishna
told reporters on Tuesday.

He said the proposal states that the levy 10 per cent may
also be imposed on additional floor area ratio (FAR) permitted
along the Metro stretches.

Seventy-five per cent of the funds raised through such
taxes would go to the Centre`s dedicated urban transport fund
which could be used for further extension of projects.

Since tax is a state government subject, they are free to
decided the percentage, Krishna said, adding that it was just
a proposal and no decision has been taken by the Centre.

If the proposal sees the light of the day, it would be
implemented in Delhi along the Metro corridors as it is one of
the few cities which has Metro transport system.

The Secretary dismissed suggestions that people living
near-by Metro corridors are being "penalised" for choosing
their residence there, saying the gainers should participate
in further development of the project.

"It is not a startling increase. The tax would be a
nominal amount and it is inevitable. Because, the Delhi Metro
has to repay its loan amount," he said.