Property tax increase, redevelopment of Meherchand Market proposed in SDMC Budget

An increase in property tax, levying professional tax, redeveloping an old mart and pedestrianisation of streets in market areas lacking parking facilities were proposed by the BJP-led South Delhi Municipal Corporation in its budget on Tuesday.

South Delhi Municipal Commissioner Puneet Kumar Goel said this while presenting the SDMC's revised budget estimates for 2018-19 and budget estimates for 2019-20 at the Civic Centre here.

"We plan to increase the earnings of the corporation through various avenues, and one of them is hiking of property tax, which we have proposed in the budget. There is also a provision to levy a professional tax for the year 2019-20, from which an income of Rs 30 crore is expected for that year," Goel said.

The revised budget estimate for the current financial year stands at Rs 5,244.14 crore, while the budget estimate for the next fiscal has been proposed to be Rs 5437.97 crore.

In the Budget 2019-20, it has been proposed to levy property tax on residential properties according to various category of colonies.

The proposed rates for residential properties falling under categories A and B is proposed to be at 14 per cent, instead of 12 per cent; for categories C, D and E, it would be 12 per cent instead of 11 per cent; and eight per cent instead of seven in F, G and H category colonies.

It is also proposed to charge property tax at the rate of 15 per cent of annual property value for special commercial non-residential properties and other non-residential properties.

Sources said, the hike in property tax and levying of new tax are likely to be rejected by the BJP-led SDMC House during its proceedings, especially with elections due in a few months.

Later, interacting with reporters, Goel said, "We will do whatever we can from our side, to augment the income of the corporation."