Capital-based property tax likely to be budget highlight
February, 16th 2013
Municipal commissioner Shyam Wardhane will present the budget for 2013-14 and also the revised budget for the current fiscal on Monday with the focus on property tax. The capital-based property tax is new for citizens. The advertisement and lease charges are also likely to be revised.
The Nagpur Municipal Corporation's general body also decided that henceforth the civic chief's budget will be presented on February 15 every year.
The capital-based property tax was announced in the budget presented last year. But the new property tax system could not be introduced because of delay in completing the process. The new system aims for transparency in tax bills.
The tax of residential consumers is expected to increase over two times while it will be three times for commercial taxpayers.
Sources told TOI that the budget could comprise new developmental works and good schemes. Unlike his Mumbai counterpart, Wardhane may not announce that local body tax (LBT) is to replace octroi. The LBT is likely to be introduced in Mumbai from October and in the city from April 1.
Though the civic chief's budget will be based on actual revenue in eight months from April 1 to November 30, 2012, the revenue has increased to a great extent up to January end. According to NMC's data, the revenue is at Rs 715.74 crore as against last year's Rs 619.79 crore. The hike is 15.48%, almost 6% more than natural annual growth.
Though the revenue may not touch Rs 1,000 crore, the NMC may end up with Rs 850 crore as against last year's Rs 780 crore. Considering this, the civic chief's 2013-14 budget could be less than Rs 1,200 crore.
In March last year, the then municipal commissioner Sanjeev Jaiswal presented a budget of Rs 1,110.08 crore for 2012-13 and Rs 947.64 crore revised budget for 2011-12.