MCD budget proposes hike in all taxes

The budget will be implemented on April 1 next year,after approval from the House.

The budget proposes an increase in property tax for residential areas in A and B category from 12 per cent to 15 per cent. For category C,D and E,the proposed tax stands at 15 per cent,as compared to present 11 per cent. Categories F,G and H areas will have to pay 10 per cent as tax,against the current rate of 7 per cent.

Commercial or non-residential properties in Category A and B will have to pay 20 per cent as tax,an increase of 5 per cent. Category C,D and E will shell out 3 per cent more at 15 per cent; and category F,G and H properties will pay 5 per cent more as proposed tax is 15 per cent.

Tax for properties of government agencies like DDA and Jal Board will also see an increase. Tax for Airports Authority of India properties,however,will remain the same as it is already paying 20 per cent,the maximum tax that can be charged.

Other government agencies will have to pay 18 per cent tax,up 3 per cent,for their residential properties in A to E category. Category F,G and H will have to pay additional 4 per cent tax. For commercial properties,an additional tax of 5 per cent has been proposed.

Residential farmhouses will have to pay 20 per cent tax,up 5 per cent. Commercial farmhouses are already paying 20 per cent tax.

The parking rates will see a sharp climb,with the budget proposing a 300 per cent increase on all charges

“We have rationalised the charges we were taking from the residents. This is an attempt to make the corporation financially independent,” said Mehra about the proposed hike.

He said conservancy charges will give the civic agency an additional income of Rs 100 crore. The charge has been divided in two categories — for use of public areas for rallies and social functions,and the second will come under the property tax net.

“We have proposed Rs 5,000 for rallies — political or otherwise — social functions,langar,processions and festival celebrations or wedding functions . There is a lot of waste left behind after such functions,and MCD safia karmacharis have to clean the areas,” said Mehra.

On the part that will be included in property tax (on the amount calculated without rebate),Mehra said: “We have proposed 10 per cent of conservancy tax,which will be taken by the assessor and collector with the property tax.”

The street tax or the night parking charge,payable once at the time of registration of a vehicle,will also be increased.

For vehicles up to Rs 4 lakh,tax of Rs 5,000 is proposed,against Rs 2,000. For cars between Rs 4 lakh and Rs 10 lakh,Rs 12,000 has been proposed,in comparison to current Rs 4,000. Street tax for cars above Rs 10 lakh will be Rs 20,000,against current Rs 4,000.

“If the proposal is approved,we will work on the stretches where we will levy congestion tax. The effort is to discourage people from travelling in private vehicles and use public transport. The tax will be levied between 8 am and 9 pm. The agency will earn Rs 50 crore per annum from it,” said Mehra.