NDMC proposes 3 per cent 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 per cent 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 per cent 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 per cent from 12 per cent. For C, D and E colonies, it has been increased to 15 per cent from 11 per cent. F, G and H colonies will have to pay ten per cent from seven per cent.
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 per cent. 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 per cent 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 per cent additional charges in peak hours between 5pm to 9pm.
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