EDMC to hike revenue collection by re-categorising properties
The BJP-ruled Corporation, during its Standing Committee meeting on Thursday, announced to implement the recommendations of the third Municipal Valuation Committee which has recommended the agencies to change property status for more tax collection. Once implemented, property owners, involved in commercial activities and traders within the ambit of the Corporation, will have to pay more taxes as categories of commercial properties will be altered.
The committee had presented its report around four years back which was presented in the Standing Committee of the unified Corporation for consideration but was being constantly postponed by all the three civic bodies without any discussion.
The Delhi government, during the past two meetings with the MCD officials, has also asked to implement the committee report within two months’ time for raising revenue.
Lata Gupta, chairman of the Standing Committee, said that in order to raise property taxes, the Corporation has decided to change categories of properties in industrial belts, hotels, banquet halls, clubs, private hostels, guest houses for students and vacant lands. The Corporation has also decided to conduct a detailed survey of properties coming under these categories in order to incorporate changes.
“As the East MCD is reeling under severe financial hardships, the need of the hour is to generate more revenue from existing sources. Rather than imposing new taxes, it is better to raise money from commercial properties. The third Municipal Valuation Committee, in its report, has recommended <g data-gr-id="46">to change</g> categories and the civic body has decided to implement it accordingly. The Standing Committee has also passed the proposal which will go to the House for the final nod. Once the House gives a go-ahead, it will be implemented in the said area,” the chairman said.
EDMC Commissioner Amit Yadav said the move will help in raising 10 to 15 <g data-gr-id="37">per cent</g> more tax as categories of properties will be upgraded. Once implemented, classification of areas/colonies will be done for changing their status, factors of three to five star hotels will be changed irrespective of their locality and will be charged separately, malls and shopping complexes will also be categorised separately and multiplication factor of vacant lands will be changed.
“Following the Municipal Valuation Committee reports and pressure from state government, it was decided to table the report before the Standing Committee. It is up to the Corporation committees whether they approve it or not,” the Commissioner said.