Gzb corporation proposes 5% hike in house tax, rebate in four slabs
The Ghaziabad municipal corporation has proposed to hike the annual rental value (ARV) of properties by 5% this financial year, which will also lead to an increase of house tax. Further, the corporation has also proposed rebate on house tax in four slabs, up to January 31, 2017.noida Updated: Jun 20, 2016 23:36 IST
The Ghaziabad municipal corporation has proposed to hike the annual rental value (ARV) of properties by 5% this financial year, which will also lead to an increase of house tax. Further, the corporation has also proposed rebate on house tax in four slabs, up to January 31, 2017.
Officials said that a 10% hike in ARV was cleared last year and discussions were held for a 5% hike every year.
“The proposal of 5% hike will now be placed before the executive committee for clearance. This will allow us to generate more revenue,” DK Sinha, additional municipal commissioner, said.
According to the corporation’s estimates, around 2.8 lakh properties fall under its jurisdiction, classified in five zones. At present, residents pay 10% of ARV as house tax, 10% as water tax and 4% as sewer and drainage tax to corporation.
The house tax is calculated on the basis of ARV, which is dependent on rate per feet decided by the corporation for different properties. Prior to the 10% hike, the corporation fixed rates of 0.60p, 0.75p, 0.90p, `1, `1.25 and `1.5 for properties. The rate is calculated on basis of the total area.
The rates were hiked by 10% last year and will be further hiked by 5%, once cleared.
For instance, based on a rate of `1.5 per sq ft, a property of 1,000 sq ft attracts annual house tax of `1,800 (10% of 1,000 sq ft x `1.5 x 12 months). Now, with the 5% proposed hike, the amount of tax would be `1890 (10% of 1,000 sq ft x `1.575 x 12 months).
“Previously, a hike of 25% was proposed but the board decided on a 10% hike. The decision was cleared after 14 years to bring in additional revenue. We had proposed a subsequent hike of 5% per year to generate continuous revenue to the corporation without pinching the tax payers’ pocket,” Rajendra Tyagi, a senior councillor with the corporation, said.
Further, for ease of payment and collection of more revenue, the corporation has proposed four slabs for rebate on house tax.
“Earlier, a rebate of 20% was given on payment of house tax by November 30. Now, the rebates have been proposed in four slabs,” Sinha said.
Under the proposal, a 20% rebate will be given on payment of tax between April 1 and July 31. A 15% rebate is proposed for tax payment between August 1 and September 30; 10% rebate for payment between October and November, and 5% rebate for payment between December and January 2017.
First Published: Jun 20, 2016 23:36 IST