EDMC proposes hike in property tax; three new taxes in budget
December, 09th 2015
The cash-strapped EDMC today proposed a minor hike in property tax and suggested three new taxes including an annual professional tax, as it sought a road map to bring the civic body out of red.
Presenting the budget proposal for financial year 2016-17 and the revised budget for 2015-16 in a special meet of the standing committee of the civic body, Commissioner Amit Yadav proposed a professional tax, a betterment tax and an education cess to augment revenue generation.
The professional tax as proposed will be Rs 1,200 for annual income of Rs 5-10 lakh for the salaried professionals, consultants, entrepreneurs and traders, Rs 2,400 in case of annual income upward of Rs 10 lakh and Rs 2,500 in case of annual earning/turnover of above Rs 25 lakh.
Presenting the budget, Yadav said that as per Delhi Municipal Corporation Act 1957, municipal corporations can impose seven types of taxes but presently only two taxes are realised.
The betterment tax will be imposed on land, buildings and its portions, at a rate of 15 per cent of the property tax.
The new taxes are expected to generate Rs 30 crore in the initial year, he said.
An education cess was also proposed in the budget, which will be 5 per cent of the property tax payable on land, buildings and its portions, he said.
Besides the new taxes, the commissioner also proposed a hike of 1-2 per cent in the property tax for different categories of colonies under the East Delhi Municipal Corporation.
The proposed revisions in property tax rates in case of 'A' and 'B' categories of residential properties will be increased from the existing 12 per cent to 14 per cent.
The proposed hike in property tax in case of 'C', 'D' and 'E' categories of properties will be just one percent. It will be increased from present 11 per cent to 12 per cent, while the tax rate of 'F', 'G' and 'H' categories of properties will remain 7 per cent.
The tax proposal for special non-residential properties maintained the existing 20 per cent rate but suggested expanding this commercial property list by including jewellery shops, guest houses, lodges, bars and non air conditioned bar and liquor shops.
The civic body by December 2 in the current year has earned Rs 131.77 crore as property tax against Rs 132.68 crore tax revenue in the last financial year. The property tax realisation in 2016-17 is estimated to be Rs 180 crore, the commissioner added.
Congress councillor and Leader of Opposition in EDMC Varyum Kaur has opposed the proposed new taxes and the hike in property tax.
"There is nothing new in th Budget for the people. It is like a balloon, colourful from outside but hollow from within," she claimed.