With polls in the offing, NDMC says no to increase property tax

From ET Realty

NEW DELHI: With an eye on the 2017 municipal pools, North Delhi Municipal Corporation on Thursday said it will not hike property tax rates.

“In public interest, we have decided not to revise the property tax rates for residential colonies,” said Yogender Chandolia, leader of the House, North Corporation.

While commissioner P K Gupta had proposed a revision in property tax rates while presenting the budget for 2016-17, it was approved by the standing committee.

The proposal was to increase rates of A & B category properties from 12% to 14% and rates of C,D & E category properties to 12% from the existing 11%.

Officials claim the property tax should be revised every few years as it is one of the major sources of revenue.

Attacking the Delhi government over the conditional loan of Rs 551 crore released to North and East Corporations, Chandolia said, “We are not going to follow any of the conditions put forward by the government.”

One of the terms mentioned in the letter by the Delhi government directed the corporations not to give any rebate on taxes and fees. However, the House went ahead and passed the proposal to waive penalties and interest of those people who have not paid property tax since the inception of unit area method in 2004.

“These people who are yet to clear their arrears cannot pay the huge sum to corporation now. Waiving the penalty will encourage them to pay taxes from now onwards,” said Chandolia.

The corporation has also proposed 15% rebate to industrial units and property owners in rural areas will be exempted from paying property taxes.

Chandolia also announced that buildings constructed up to 100 yards will now be regularized and no sealing action will be taken against these.

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