Slew of new taxes and rate hikes soon

If you own a house in the city, be prepared to spend more on property tax.And worse: if you work in an area under the jurisdiction of the Municipal Corporation of Delhi (MCD), it means shelling out even more.

These are proposals made by the civic agency — which controls 96 per cent of Delhi’s area — in its budget estimates for the year 2010-2011.

This will help the corporation earn an additional of Rs 500 crore a year, said MCD commissioner K.S. Mehra.

Mehra has proposed an increase of five per cent in property tax rates in all categories — residential and commercial. The MCD area has been divided into eight categories — A to H — wherein category A stands for upscale colonies.

If the proposal goes through, the tax rate of 10 per cent will go up to 15 per cent and from six to 11 per cent. In effect, this means you pay 50 per cent more. So, a person who was paying property tax of Rs 13,000 a year will now have to pay Rs 19,500.

“We want to provide better services and for this we need more funds,” Mehra said.

There is even more bad news.

In addition to the proposed property tax hike, the Municipal Valuation Committee (MVC) will revise the unit area values (per square metre) under which there could be a minimum increase of 24 per cent.

This means apart from a hike in tax rates, the unit area values may also increase. Together, property tax could go up by 66 per cent. For instance, the unit area value of category A is Rs 630 per sq m. If the proposal is accepted, it will be hiked by 24 per cent to Rs 781 per sq m.

“With new area values, the rates may go up to 35 per cent,” said a senior MCD official.

Mehra has also proposed an imposition of 20 per cent commercial tax on rented non-residential properties and ‘high-end non-residential’ properties such as hotels and malls.

For professionals, tax may be levied on those who work in MCD areas and earn more than Rs 30,000 per month.

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Source with thanks : Hindustantimes.com

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