5-star hotels, high-end schools to pay more tax | delhi | Hindustan Times
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5-star hotels, high-end schools to pay more tax

delhi Updated: Dec 16, 2010 01:14 IST
HT Correspondent
HT Correspondent
Hindustan Times
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Five-star hotels, high-end schools and gymnasiums will now have to shell out more money as property tax every year. A committee of councillors has accepted the proposal of the Municipal Valuation Committee (MVC), set up the valuation committee to review property tax in the city.

Giving no relaxation to commercial properties, the Standing Committee of the Municipal Corporation of Delhi (MCD) rejected the proposal for downward revision of factor for three-star hotels in the city. Guesthouses, three-star hotels, in residential areas will also have to pay property tax at the rate of 10% and not 8%, as suggested by the MVC.

At present, areas under the jurisdiction of MCD have been divided into eight categories A to H, according to which category A stands for upscale colonies paying the highest amount of tax.

All such properties will now come under category 'A', irrespective of their location. There are 100-odd high-end hotels and schools that are located in E, F, G and H category, paying a meagre amount of tax.

However, the committee has shot down proposals of upgrading 168 colonies to higher tax slot due to their proximity to Metro lines.

The MVC had decided to upgrade 168 colonies on account of proximity to Metro lines and a number of DDA colonies and special commercial properties.

"The committee may have rejected the upgradation of the colonies, but the final decision will be taken only after considering the opinion of residents and other stakeholders," said a senior MCD official.

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