Presenting the revised budget estimates for the current financial year on Tuesday, Commissioner of the East Delhi Municipal Corporation, Dilraj Kaur proposed a hike in property tax in various categories, a betterment tax as well as a professional tax — similar to proposals made in the South and North bodies.
Among new taxes, the east body proposed the introduction of an education cess of 5% of property tax, introduction of a “betterment tax” (levied on improvement of property value as a consequence of improved public infrastructure) at a rate of 10% of the property tax and introduction of a professional tax with two slabs. For people earning more than ₹5 lakh a year, a tax of ₹100 per month and for those earning more than ₹10 lakh a year, a tax of ₹200 per month was proposed. With these taxes, the EDMC hopes to increase its revenue by at least ₹30 crore, it said.
With regard to property tax rates, EDMC had proposed to increase the rate charged from properties in the C, D and E categories from 11- 12% and for properties in the F, G and H categories from 7-10%.
The proposals would have to be approved by the deliberative wing of the EDMC before being implemented.
While the EDMC had to revise its estimates for external sources of revenue down by about ₹1,300 crore, the civic body has significantly revised its upwards global share of taxes based on recommendations of the Fifth Delhi Finance Commission. From an earlier estimate of ₹250 crore, the EDMC now expects to end the year with ₹1,038 crore.
The Commissioner said that with the new devolution formula and funds received based on the latest DFC’s recommendations, the east civic body was just able to manage it’s day-to-day expenses.
