No more tax benefit to establishments in far flung areas
Five star hotels, high-end schools, gymnasiums, multiplexes and others would soon have to shell out more money as property tax from next year.delhi Updated: Sep 06, 2011 23:19 IST
Five star hotels, high-end schools, gymnasiums, multiplexes and others would soon have to shell out more money as property tax from next year.
The Municipal Valuation Committee (MVC) constituted by the Delhi government to review property tax in the city had made these properties independent of their geographical location, which means that though they might be located in far flung areas, they will have to pay as much tax as properties in posh colonies.
According to sources, the Municipal Corporation of Delhi (MCD) will be implementing the suggestions of the MVC. “But before giving it a go-ahead in the Standing Committee meeting, the matter will be referred to a sub-committee to study the recommendations again,” said a senior MCD official.
Currently, area under the jurisdiction of MCD has been divided into eight categories — A to H, wherein category A stands for upscale colonies that pay the highest amount of tax including New Friends Colony, Vasant Kunj and Anand Niketan among others.
However, MVC suggestions have done away with all these various slabs for high-end hotels, schools, gymnasiums. All these will now come under category ‘A’, irrespective of their location. At present, there are many high-end hotels and schools that are located in E, F, G and H category and paying a meagre amount of tax.
“The new categorisation will help in increasing the revenue earned through property tax. These suggestions are mainly pertaining to the commercial establishments,” said Yogender Chandolia, chairman of MCD’s Standing Committee.