Delhi: SDMC proposes to hike property tax by 2-5% | Delhi News – Times of India

NEW DELHI: With the finances of South Delhi Municipal Corporation in the doldrums, its commissioner proposed an increase of 2-5% in tax rates for residential, commercial and non-residential properties. But Tuesday’s budget being the last before municipal elections in 2022, the deliberative wing of the civic body is unlikely to dismay the voters by approving the higher taxes.
The budget for 2022-23 proposed to divide all categorised residential properties in two slabs, A to E and F to H, and charge 14% of annual value as tax in the first and 12% in the second. At present, the rate is 12% in A and B categories, 11% in C to E categories and 7% in F to H.

For non-residential and commercial properties, the proposal was to put the tax rate at 15% for properties in A-D categories. As of now, the rate is 15% for A and B categories and 12% for C and D categories. Property tax on commercial, non-residential properties in the E, F, G and H categories was proposed to be raised to 12 % from the existing 10%.
Commissioner Gyanesh Bharti said, “We hope to increase revenue from property tax by 15% after implementing these increases. This is important to bring the civic body out of the deep financial crunch. If not implemented, SDMC will face a serious problem in paying salaries on time.”
The hiked property taxes will bring in Rs 1,445 crore in 2022-23 against Rs 1,260 crore in 2021-22. There was also a proposal to add hotels, motels, company guest houses, district centres, malls and shops in DMRC complexes and restaurants without bar facilities to the list of properties charged tax at 20% rather than the existing 15%.
The proposals also included reducing the 15% waiver for payment of property tax before June 30 to 10% and reducing the 30% rebate given to the senior citizens, disabled citizens and women to 20%. Likewise, for lumpsum payment of advance taxes by co-operative group housing societies, the budget proposed reducing the incentive from 20% to 10% and ending the 10% rebate given to DDA and CGHS flats of up to 100 sq metres. Bharti said, “We will also appeal to Delhi Government to reduce the transfer duty from the prevailing 3% to 1 %.”
Bharti claimed that SDMC was looking at all sources of revenue generation. “We implemented the policy for installing mobile towers in 2020 and till October 2021 we generated Rs 15 crore from 117 sites. Revenues from advertisements came down from the proposed Rs 170 crore to Rs 90 crore due to the pandemic. We now hope to generate higher income by allocating space for LED /digital advertisements in 13 more markets,” said Bharti while presenting the SDMC budget.
Bharti also said, “Tenders for the construction of a parking facility for 238 cars in GK II, 81 in Amar Colony and 225 near Punjabi Bagh Cremation Centre will be invited soon. Such space has also been identified at Punjabi Bagh Club Road and B-1 Janakpuri.”


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