NDMC hikes property tax, introduces two new levies

New Delhi: In an attempt to make it financially self reliant, the North Delhi Municipal Corporation proposed on Friday to increase property tax and also introduced two new taxes — betterment tax and professional tax.

Presenting the Budget estimates for the next financial year in the civic body’s standing committee, municipal commissioner (NDMC) Madhup Vyas proposed to increase the residential property tax by maximum 2 per cent and the introduction of betterment tax at the rate of 15 per cent of annual value of property tax and professional tax. He said that the new taxes will help NDMC earn Rs 550 crore annually. “Commercial properties, guest houses, and other non residential properties upto 150 square meter will be increased from 15 per cent to 20 per cent of annual value. One per cent of annual value of property tax will be charged as education cess,” said Mr Vyas, claiming that rationalisation of property tax rates will add Rs 100 crore in property tax collection. Presenting a total Budget estimate of over Rs 8,832 crore, Mr Vyas suggested several measures to make the North civic body self-reliant. He proposed to work more efficiently to realise due municipal taxes and stop avoidable expenses. Some of the measures are allowing installation of mobile towers on 800 municipal buildings; outsourcing of management of 30 gyms; provision of charging points for e-cars and e-rickshaws; smart poles with Wi-Fi, CCTV, and LED lights; advertisements on vehicles; MOU for 25 cycle stands in lieu of advertisement rights; advertisements in parks, on DTC buses and railway properties.

Referring to infrastructure project, Mr Vyas said that Rampura Rail Under Bridge (RUB) will be completed in this financial year and Sultanpuri RUB is likely to be completed in the next financial year.

“North Corporation sought allocation of Rs 282.7 crore for developing RUB at Kirari, Ghevra, and Narela Mandi under Urban Development Fund,” Mr Vyas added. Talking about parking facilities, the commissioner said that NDMC has chalked out a plan to provide parking for 52,910 vehicles by the year 2021 in a phased manner by developing 42 surface parking to accommodate 8,495 vehicles, multi-level parking at 13 Metro plots to accommodate 12,021 vehicles, and 16 stack parking to accommodate 1,361 vehicles.