More taxes for East residents?
7 Dec 2012 11:45 PM GMT
Flush with funds, the East Delhi Municipal Corporation (EDMC) wants more. In the budget proposal for 2013-14, EDMC commissioner has proposed four new taxes on residents –education cess on property tax, professional tax, betterment tax and electricity tax. In addition to four new taxes, the commissioner has also proposed to increase the parking rates and property tax with a target to realise over Rs 153 crore.
As per the proposal, a five per cent education cess will be levied on the property tax, which will be collected along with the property tax. The corporation expects to collect an additional revenue of Rs 11 crore from this new cess. An additional 10 per cent of property tax will be levied as betterment tax.
According to the EDMC commissioner Sajjan Singh Yadav, value of properties increases due to infrastrcture development, modern transport facilities and regularisation of colonies, for which the corporation expends a lot but gets nothing. ‘The new tax will fetch a fair share for the corporation,’ contended Yadav.
The residents have also been divided in three categories as per their annual income, for the purpose of professional tax. Those earning between Rs 5-10 lakh will pay Rs 1,200 per annum while those earning more than Rs 10 lakh per annum will be liable to pay Rs 2,400 per annum as professional tax.
The third category is of dealers who are liable to pay VAT with annual turnover of Rs 25 lakh will be charged Rs 2,500 per annum. The fourth new tax is electricity tax, which will be levied on the power generators of 5 KWS and above at the rate of Rs 200 per annum per KW.
The commissioner contended that these generator operators supply power to various commercial establishments thus getting huge profits.
‘We have to exploit our limited revenue resources to maximum to implement planned projects in providing international standard services to our citizens simultaneously, making the corporation self reliant and to avoid any future financial crisis,’ said Yadav, after presenting the budget in a special meeting of standing committee in EDMC headquarters.
In the budget for 2013-14, the commissioner has estimated an income of Rs 1,938.52 crore and Rs 1,947.69 crore expenditure.
In the same budget, the commissioner also presented revised budget estimates for 2012-13 with a closing balance of Rs 11.16 crore.
As per the proposal, a five per cent education cess will be levied on the property tax, which will be collected along with the property tax. The corporation expects to collect an additional revenue of Rs 11 crore from this new cess. An additional 10 per cent of property tax will be levied as betterment tax.
According to the EDMC commissioner Sajjan Singh Yadav, value of properties increases due to infrastrcture development, modern transport facilities and regularisation of colonies, for which the corporation expends a lot but gets nothing. ‘The new tax will fetch a fair share for the corporation,’ contended Yadav.
The residents have also been divided in three categories as per their annual income, for the purpose of professional tax. Those earning between Rs 5-10 lakh will pay Rs 1,200 per annum while those earning more than Rs 10 lakh per annum will be liable to pay Rs 2,400 per annum as professional tax.
The third category is of dealers who are liable to pay VAT with annual turnover of Rs 25 lakh will be charged Rs 2,500 per annum. The fourth new tax is electricity tax, which will be levied on the power generators of 5 KWS and above at the rate of Rs 200 per annum per KW.
The commissioner contended that these generator operators supply power to various commercial establishments thus getting huge profits.
‘We have to exploit our limited revenue resources to maximum to implement planned projects in providing international standard services to our citizens simultaneously, making the corporation self reliant and to avoid any future financial crisis,’ said Yadav, after presenting the budget in a special meeting of standing committee in EDMC headquarters.
In the budget for 2013-14, the commissioner has estimated an income of Rs 1,938.52 crore and Rs 1,947.69 crore expenditure.
In the same budget, the commissioner also presented revised budget estimates for 2012-13 with a closing balance of Rs 11.16 crore.
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