East Delhi property owners to pay more

Corporation proposes new taxes, cess

Property owners would end up paying more taxes to East Delhi Municipal Corporation from the next financial year with the civic body on Thursday proposing an increase in the unit area value and introducing new levies.

It has proposed three new taxes – professional tax, betterment tax and electricity tax – and a five per cent education cess on property tax for east Delhi residents.

If that wasn't enough, the EDMC has also proposed a steep hike in parking charges
 EDMC commissioner S S Yadav, presenting a Rs 1947.69 crore budget for the the  next financial year 2013-14 on Thursday, chose not to tinker with the existing property tax rates.

But at the same time, he proposed to levy a 10 per cent betterment tax on property tax, apart from the education cess. 

Yadav said the education cess will be used in improving the quality of education.  He justified the betterment tax, saying the  value of properties is rising due to infrastructure development, modern transport facilities and regularisation of colonies in east Delhi.

With the corporation proposing around 100 per cent increase in the base rate of properties, coupled with the betterment tax and the education cess, property owners will end up paying around 60 per cent more property tax.

 “The value of properties in East Delhi has increased over the last few years. Therefore, it is important to hike property tax base value that was last revised in 2004,” the EDMC commissioner said. 

Base unit value is one of the major determinant in calculating property tax,  with the other components being plot area, occupancy factor, use factor, age of the structure and rate of tax (depending on category of the colony).

Professional tax

The proposed professional tax will be levied on all professionals, traders and job holders whose annual income is Rs 5 lakh and above.

Three slabs will be created on the basis of income tax returns. Professionals earning between Rs 5 to Rs 10 lakh per annum will pay Rs 1,200 per year and those making more than Rs 10 lakh will shell out Rs 2,400 per annum.

Dealers who are liable to paying VAT and whose annual turnover is more than Rs 25 lakh will have to pay a professional tax of Rs 2,500 per annum.

Yadav termed the new tax to be a meagre amount. “Delhi is the only metro city where the local bodies have not levied professional tax. Local bodies in almost all the major metro cities have this tax in place,” he said.

 The civic body has also proposed to levy electricity tax at the rate of Rs 200 per year per kilowatton power generators of 5 KW and above.

Commercial establishments, group housing socities and others using heavy generators are likely to be covered under the new tax.

 The corporation expects to generate an extra revenue of Rs 120 crore during the next fiscal if the new tax regime is implemented. 

Parking charges hiked

The civic body plans to increase the parking charges in east Delhi . Instead of the current two slabs — up to 10 hours and above 10 hours — for parking charges, the new proposal provides for four slabs of up to 30 minutes, 30 minutes to 1 hour, 1 hour to 3 hours and above 3 hours.  Four-wheelers will be charged 50 per cent extra during the 5 pm to 9 pm peak hours.

Officials said the budget proposals were aimed at making the corporation self-sufficient. But the ruling Bharatiya Janata Party leaders stress that they will be scrutinised before the House passes them.

“The corporation officials have put in lot of effort in preparing the budget proposals, However, the proposals would be discussed in details by the members of the standing committee and other members in the House,” said standing committee chairman Mahak Singh. “The interest of the people would be duly considered.”  he said.

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