Madhup Vyas, the Commissioner of North Delhi Municipal Corporation presented the budget for the financial year 2019-20 and stated an increased in the property tax rates by 2 percent. Apart from this, some new taxes were also introduced in order to generate more revenue. These increased rates will help to wave-off the debt of Rs. 750 crore and will also support the civic body to maintain its financial stability.
The Commissioner called this increase in property tax as the only viable option and also appealed to sanction the Fourth Municipal Valuation Committee report. The North Delhi Municipal Corporation is expected to earn 33% more revenue according to this report.
The Commissioner also introduced an education cess of 1 percent on the total amount of property tax. He also informed about the two new types of taxes added to the budget.
The increase in property tax is defined category-wise as a hike of 1 percent is introduced for properties in A to E category colonies and 2 percent hike for F, G and H category colonies. The tax for the commercial property above 150 sq.m. will be increased from 15 to 20 percent, the Commissioner said. He further said that the tax rates were not revised since 2004 when the unit area method was introduced to calculate the property tax calculation.
The civic body is expecting to generate Rs. 950 crore as property tax with an increase of 100 crores. The commissioner also said that it is hopeful to get these new tax rates sanctioned.
The second and third Delhi Finance Commission recommended betterment tax and professional tax to minimize the dependency of the North Delhi Municipal Corporation on the Delhi Government. A 15 percent of the Betterment tax will be imposed on the annual property value. This tax incorporate components like development, infrastructure improvement and other services that are responsible for the increasing value of properties, the Commissioner said. He also said to expect revenue of Rs. 450 crore from this tax.
Similar to this, the professional tax is proposed to be imposed on all taxable income earned by the professionals. The Commissioner proposed Rs 1,200 tax on annual income of Rs 2.5 to 5 lakh, Rs 2,400 on income between Rs 5 and 10 lakh and Rs 2,500 on income above 10 lakh. This will help the civic body to generate revenue of Rs. 100 crore.
The betterment tax will be levied along with the property tax and the professional tax will be purely-based on the data from the income tax department.
The corporation is about to complete the survey for Unique Property Identification Card (UPIC) and this is expected to cover more tax payers in the area. On a whole, 11.7 lakh units were surveyed out of which UPIC cards were issued to 7.43 lakh. This procedure is likely to get completed by March 2019 an official said.