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Home / Cities / KDMC proposes property tax hike, residents want amenities first

KDMC proposes property tax hike, residents want amenities first

cities Updated: Jan 16, 2020 00:53 IST
Hindustantimes
         

Residents of Kalyan and Dombivli might have to pay more property tax from the next financial year.

Kalyan-Dombivli Municipal Corporation (KDMC) has plans to increase property tax by 3%.

It has proposed an increase of 2% in general education tax and 1% in road tax which is part of property tax. The proposal will be tabled in standing committee meeting on Friday.

The proposal is to increase general road tax from 9% to 10% and the civic education tax, which is 3%, will be hiked to 5%.

“The general education and road tax is a part of property tax. There is a need to increase them to improve services provided by the civic body. The administration had proposed the hike which will be discussed in the standing committee meeting,” said a KDMC official, who did not wish to be named.

With this hike, KDMC will add ₹14.22 crore to its revenue.

“The estimated revenue to be added to KDMC coffers is around Rs14.22 crore,” said the official.

According to KDMC officials, after the standing committee sanctions the proposal, it will have to be approved by the general body and after that will be finalised for the annual budget.

Since 2013, KDMC has been imposing 71.5% property tax on residential properties, which includes water supply, general, education, road, sewage and sewage facilities. Commercial properties pay 83% property tax.

In January 2018, the general body sanctioned the proposal for reduction in open land tax (OLT) in Kalyan and Dombivli. The civic body used to levy 100% OLT in Kalyan and Dombivli which was reduced to 33% from April 2018.

Followed by the reduction in OLT, residents demanded reduction in property tax.

The recent proposal for hike has again irked residents, who were already demanding a reduction in the property tax rate.

“For the past two years, we have been asking the civic body to reduce property tax which was increased in 2011-12 by 22%. The civic body did not accept the demand. It is now planning to hike tax by 3%,” said Sreeniwas Ghanekar, founder of Alert Citizens Group, Kalyan.

He said, “Why is the civic body increasing tax when residents have not been given proper amenities? Roads are as bad as it used to in the past few years.”

As per Ghanekar, the tax rate in Kalyan and Dombivli was 49% of the property’s ready reckoner. This was raised to 73% since 2013.

Officials said KDMC has been trying to get the 3% tax hike for the past three years. The proposal was tabled in the standing committee thrice, but was not sanctioned.

“With KDMC elections in October- November this year, there is a chance of strong opposition on the proposed tax hike by the elected representatives again,” said the officer.