Ghaziabad: UP proposes hike in house tax every 2 years
The state government wants both house tax and water tax revised every two yearsUpdated: Jun 27, 2017 23:57 IST
The Uttar Pradesh government has directed local bodies, including municipal corporations, to revise house tax and water tax every two years in order to increase revenue. The directions came in the wake of various corporations not revising the tax structure for years.
State officials have also asked the municipal corporations to suggest any changes or amendments to be made in the Municipal Corporations Act or in by-laws to make the hike applicable. In Ghaziabad, the house tax was revised by 10% in 2015-16 after a gap of almost a decade. The next financial year, it was decided that there will be a hike of 5% every subsequent year. However, officials are yet to take a final decision.
“We will study the order and take an appropriate decision about a hike in the house tax component,” said CP Singh, Ghaziabad municipal commissioner.
However, according to city councillors, the decision to increase house tax may be put on the back burner this year as local body elections are to be held soon.
“As the elections are coming up, the hike may not be made. However, a decision in the matter is still pending. After a gap of several years, there was a proposal to hike the tax by 25%, but we proposed 10% instead. Later, it was decided that a 5% tax be increased every subsequent year. The provision to increase the tax every year is already defined under the Municipal Corporations Act and must be followed to increase revenue,” said Rajendra Tyagi, a councillor.
Other representatives of the corporation, however, said properties not taxed currently should be brought in the tax ambit to increase revenue.
“We have already cleared a proposal for Geographic Information System (GIS) survey of such properties. They must be brought under the tax ambit to increase revenue. A decision on the government’s direction to hike the tax will be taken in the near future,” said mayor Ashu Verma.
The corporation levies 10% house tax and water tax respectively on properties under its jurisdiction, apart from a 4% sewer and drainage tax. As per official estimates, the corporation generates around Rs80-Rs90 crore as annual revenue from levy of house tax.
First Published: Jun 27, 2017 23:57 IST