NDMC Plans Property Tax Hike, Betterment Tax

In order to improve the state of its finances, the North Delhi Municipal Corporation (NDMC) is planning to implement a “nominal” hike in property tax rates. Presenting the revised Budget Estimates for financial year 2018-19 and an estimate for the next fiscal on December 7, the municipal body also proposed a new levy in the form of betterment taxes.

Starting next financial year, residential properties may see a one per cent hike in all the A-E categories of residential buildings and a two per cent hike in residential categories of F to H. The tax rate for commercial properties of up to 150 square metre would increase to 20 per cent of the annual value from the current 15 per cent.

Justifying the move, North Delhi Municipal Commissioner Madhup Vyas said that property tax rates were not revised ever since the Unit Area Method to calculate the tax was adopted in 2014.

"We are quite hopeful that the property hike proposal will be approved by the Standing Committee of the NDMC. We need more avenues to augment our income, and besides that, two new taxes ─ professional tax and betterment tax ─ have also been proposed," Vyas was quoted as saying.

A betterment tax of 15 per cent of annual value of property tax has also been proposed. The NDMC expects to earn Rs 450 crore annually by levying this new tax.

With inputs from Housing News