NDMC budget hikes property tax, brings embassies in tax net

Misra, said the NDMC has also approached the Centre to allow them to levy service charges, equivalent of 75 per cent of property tax, on properties occupied by embassies and other diplomatic missions. This is at par with the charges the government pays for its buildings in the NDMC area.

At present, diplomatic missions are not charged any property tax. Embassies and the government, which pay service charges, account for more than half of the properties in the NDMC area.

In a bid to collect additional revenue worth Rs 15 crore, property tax has been raised for all categories of owners and occupiers, barring self-occupied domestic properties.

The NDMC has proposed a five per cent hike for both residential and non-residential buildings. While owners and occupants of residential buildings will have to 20 per cent property tax, the rate shall be 25 per cent for non-residential buildings. Commercial establishments like hotels, banks, insurance companies, cinema halls, guest houses and clubs would have to pay 30 per cent property tax, a hike of ten per cent. Outlining their major expenditure for the year 1999-2000, Misra said they would spend Rs 279 crore on electricity supply, Rs 114 crore on roads, public works and projects, Rs 86 crore on education, Rs 78 crore on medical and public health and Rs 28 crore on water supply.

The major sources of revenue would be sale of electricity and water, estimated to get the corporation Rs 381 crore, licence fees from properties (worth Rs 60 crore) and Rs 82 crore from taxes. The NDMC will generate Rs 22 crore by way of licence fee from kiosks, cigarrette vendors, parking lots and advertisements.

The thrust areas this year would be introduction of computers in schools, investments in power and water supply, sewage disposal infrastructure and replacement plantation of trees lining major roads. The NDMC also plans to open an old age home for women, three commercial centres, a multi-tier parking facility in Connaught Place and begin construction on four out of 15 subways that they plan to build.

The corporation also hopes to remove all slum clusters in their area. Moreover, as part of their technology upgradation scheme, garbage and sewage disposal would be mechanised, composting done to reduce load on landfill sites, recycling technology used in road construction and tunneling technology used in sub-ways. Misra also said they would freeze recruitment and no new posts would be created to curb expenses.