NEW DELHI: The property tax rates of several colonies in the city are likely to shoot up, as the Municipal Valuation Committee in its final report has recommended upgradation of these colonies to a higher slot. The recommendation is based on the developmental work done in these colonies. Commercial properties too will have to shell out more as property tax. The Municipal Corporation ofDelhi (MCD) is preparing a preamble which will be tabled in the Standing committee of the MCD next week.
According to MCD officials, the first MVC in 2004 had placed colonies in different categories ranging from A to H. But the categorization of certain colonies was lowered by a Hardship and Anomaly Committee formed by MCD. "The recommendations of the committee were implemented and till now these colonies are paying lesser property tax,'' said a senior MCD official. But the MVC-3 in its recent report has turned down the recommendations of the Hardship and Anomaly Committee and reinstated the recommendations of MVC-1. "The colonies, which benefited after their category was lowered, will now be upgraded as per the recommendations of MVC-1 and have to pay higher property tax,'' said a senior MCD official.
Close to 125 colonies in the city are going to be upgraded by one-type. "A lot of anomalies were found in these colonies. Since 2004, different parts of the city have seen tremendous development. But the MCD has not benefited in terms of revenue. This upgradation of colonies will help MCD get more revenue,'' said an official. In its interim report, the MVC had recommended that areas which have benefited from Metro should be upgraded to the next level. But the committee dropped the suggestion in its final report. Another pointer which was dropped by the MVC was upgrading the status of all the DDA colonies in Trans-Yamuna areas. "It was recommended that the category should be upgraded on grounds that massive infrastructure upgradation has occurred in these areas and the civic agency can benefit from it. But it was turned down,'' said an official.
Five-star hotels, three and four star hotels, banquets, industrial areas and all commercial properties will have to pay higher tax rates. Five-star hotels have been made independent of their locations and will be paying the highest amount of tax. So, if a five-star hotel is in a category C area, the property tax will be charged according to category A.
Though MCD's political wing was reluctant in implementing the recommendations of the MVC-2 in 2007, the current recommendations are a binding on MCD. "Property tax is the main source of revenue for MCD. As the political wing turned down the MVC-2 recommendation, we had no option to increase the property tax rates to boost our revenue. The recommendations have to be implemented now,'' said an MCD official.
According to MCD officials, the first MVC in 2004 had placed colonies in different categories ranging from A to H. But the categorization of certain colonies was lowered by a Hardship and Anomaly Committee formed by MCD. "The recommendations of the committee were implemented and till now these colonies are paying lesser property tax,'' said a senior MCD official. But the MVC-3 in its recent report has turned down the recommendations of the Hardship and Anomaly Committee and reinstated the recommendations of MVC-1. "The colonies, which benefited after their category was lowered, will now be upgraded as per the recommendations of MVC-1 and have to pay higher property tax,'' said a senior MCD official.
Close to 125 colonies in the city are going to be upgraded by one-type. "A lot of anomalies were found in these colonies. Since 2004, different parts of the city have seen tremendous development. But the MCD has not benefited in terms of revenue. This upgradation of colonies will help MCD get more revenue,'' said an official. In its interim report, the MVC had recommended that areas which have benefited from Metro should be upgraded to the next level. But the committee dropped the suggestion in its final report. Another pointer which was dropped by the MVC was upgrading the status of all the DDA colonies in Trans-Yamuna areas. "It was recommended that the category should be upgraded on grounds that massive infrastructure upgradation has occurred in these areas and the civic agency can benefit from it. But it was turned down,'' said an official.
Five-star hotels, three and four star hotels, banquets, industrial areas and all commercial properties will have to pay higher tax rates. Five-star hotels have been made independent of their locations and will be paying the highest amount of tax. So, if a five-star hotel is in a category C area, the property tax will be charged according to category A.
Though MCD's political wing was reluctant in implementing the recommendations of the MVC-2 in 2007, the current recommendations are a binding on MCD. "Property tax is the main source of revenue for MCD. As the political wing turned down the MVC-2 recommendation, we had no option to increase the property tax rates to boost our revenue. The recommendations have to be implemented now,'' said an MCD official.
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