Ghaziabad civic body board decides not to levy hiked tax under new structure

The decision of the board will now be forwarded to the state government for further action and directions. We will act on the directions of the government in this regard

The board of the Ghaziabad municipal corporation, which met on Wednesday, unanimously decided against levying increased property tax under the new tax structure, officials said.

During the board meeting at Ghaziabad municipal corporation office on Wednesday. (Sakib Ali/HT Photo)

The board’s decision will be conveyed to the state government for further action in the matter, they said.

The levy of tax under the new structure was proposed first in 2022 but it has not been implemented till date, owing to objections raised by councillors from time to time. The property tax includes three components – house tax, water tax, and sewage/drainage tax.

“The decision of the board will now be forwarded to the state government for further action and directions. We will act on the directions of the government in this regard,” said Vikramaditya Malik, municipal commissioner.

Officials in the said they have started sending out tax bills, based on the new tax structure, to new (untaxed) properties, while all old properties will automatically come under its purview within the next four years. This is so because all properties are subject to a process of revision every four years, said officials.

“Since the board has decided against the new tax structure, we will now seek directions from the state government about levy of tax,” said an official from the corporation, asking not to be named.

Mayor Sunita Dayal said, “The levy of tax as per the new structure would mean a hike in tax by about 4-5 times. I will not allow this to happen and will again apprise the state about the issue. If the corporation needs to generate more revenue, they must levy tax accurately on existing properties. During several inspections, I found that a lower tax was levied on certain malls and that has been going on for several years now. This has led to a dent in our revenue.”

She also asked officials during the board meeting that they stop sending tax bills as per the new structure.

“I have asked them to stop sending the tax bills as per new tax structure. If these bills have already been sent, the excess amount paid should be adjusted over the coming years. There is already a board decision for increasing tax by 5% every two years. So, levy of new structure is uncalled for in public interest,” Dayal said.

Under the new tax structure, residential colonies have been grouped under three categories – A, B and C. Category A comprises prime and upscale localities; category B comprises localities that are less developed while category C comprises localities that are least developed, officials said.

The property tax is ascertained on rental values of the property.

Under the new structure, the corporation has proposed different per square foot rental value rates for ascertaining the tax in different, A, B or C categories.

The old structure had uniform rental value rates for all properties in every residential locality.

Some of the colonies which are categorised under category ‘A’ include blocks of Kavi Nagar, Raj Nagar, Nehru Nagar, Shastri Nagar, Neelam Vihar and Seemant Vihar in Kaushambi, sectors in Vasundhara and Vaishali, Shalimar Garden (main), Raj Nagar Extension besides Nyay Khand, Niti Khand, Abhay Khand, Shakti Khand and Gyan Khand in Indirapuram.

Further, the board on Wednesday also approved issuance of trade licences for 13 activities such as gyms, beauty parlours, coaching centres, spas, branded shoes showrooms, branded cloth showrooms, branded jewellery showrooms and sports academies, among others.

The officials proposed levy of annual trade licence fees ranging from ₹2000 to ₹20,000, according to the activity.

“The board decided that a committee should be formed to identify such establishments and also to decide the annual fee. Once the committee gives its report, further course of action will be decided. This may take another 1-2 months,” Malik said.