Old taxes hiked, new ones planned
Cost of living is on the rise. And if the proposals made by east Delhi municipal commissioner SS Yadav in his budget speech on Thursday are passed, living in east Delhi especially is going to pinch hard.delhi Updated: Dec 07, 2012 02:13 IST
Cost of living is on the rise. And if the proposals made by east Delhi municipal commissioner SS Yadav in his budget speech on Thursday are passed, living in east Delhi especially is going to pinch hard. Apart from proposing to hike property tax, the commissioner has also suggested imposition of three new taxes — education cess, betterment tax and professional tax.
While presenting the annual budget of Rs. 1,947 crore in the East Delhi Municipal Corporation (EDMC) house, Yadav has proposed that the base value of properties be raised by 1.6 percent. To it will be added education cess and betterment tax, which will be 5 and 10% of the payable tax, respectively. The total hike in your property tax bill will come to around 60%.
Since its formation in April, the east corporation has been looking for ways of filling its coffers. It is said to be the poorest among the three corporations formed after the MCD’s trifurcation. It had taken a loan of R421 crore from the Delhi government to kickstart its projects.Moreover, it faces the uphill task of developing an area that is largely made up of unauthorised colonies.
EDMC has also proposed to levy professional tax on salaried residents, wage earners, consultants, insurance agents, businessman and entrepreneurs with earnings more than R5 lakh per annum. Parking charges too were hiked as was the electricity tax on power generators of 5KW and above.
While no rise in property tax percentage has been proposed, Yadav did say that since the value of properties in east Delhi has increased, it was important to hike property tax base value that was last revised in 2004. An amount of R11 crore is expected from the imposition of education cess and R22 crore from the betterment tax.
“A lot of infrastructure has been created in east Delhi. This has led to an increase in the values of properties, which is why we are proposing to impose a betterment tax,” he said.
Announcing other initiatives, Yadav proposed an SMS alert scheme that will inform people about their application status and property tax payment dues. A call centre will also be established for complaints.
He also announced that two mobile vans will act as road ambulances to repair damaged roads that needed immediate attention.