Tax hike for commercial property

Commercial properties located within a radius of one kilometres from a Metro line may soon see a hike in property tax.

Leaders of the three new municipal corporations have confirmed the move. But in view of the assembly elections scheduled next year, residential properties will be spared from the hike.

All five-star and three-star hotels, private hospitals and industrial areas in the city will also be brought under the same tax net. 

Earlier, hotels in posh areas or higher category locality paid more taxes than those in the rest of Delhi.

"Since these are high-end hotels, they should be paying the same taxes. There will be no relaxation on the basis of locality anymore," said Subhash Arya leader of the House, South Corporation.

The three corporations have formed a nine-member coordination committee to look into the implementation of the suggestions of the third municipal evaluation committee report. By forming the committee, the BJP leadership hopes to follow a uniform taxation policy in Delhi.

The report aims to increase the revenue earned by the municipal corporations so that they do not have to depend on the state and central government funds. The unified MCD had not increased taxes since 2009 and hence, revenues had stayed static.

"The commercial establishments can definitely afford to pay more taxes and we will accept some of the recommendations made by the evaluation committee," said VP Pandey, deputy chairman, North corporation standing committee.

Once the new coordination committee submits its report, the three corporations will adopt it and then implement it. The whole process will take a few months.

Presently, areas under the jurisdiction of the civic bodies are divided into A-H categories, with upmarket areas like New Friends Colony and Vasant Vihar, falling in A category..

Source:- hindustantimes