Three new taxes along with hike in property tax rates were proposed by the East Delhi Municipal Corporation’s Commissioner while presenting the civic body’s budget on Monday.
The taxes proposed are similar to those proposed by the North Delhi Municipal Corporation Commissioner in his budget speech last week.
They include a ‘betterment tax’ of 15% charged in lieu of improvement in the value of land as a consequence of development work undertaken, a professional tax on individuals, with three tax slabs meant to reduce the dependence of the corporation on the Delhi government for funds and an education cess of 5%.
Comparatively, the South and North Corporations have proposed a 1% education cess.
Apart from this, residential properties in the categories A and B will be charged 14%, those in categories C, D and E will be charged 12% and those in the categories F, G and H will be charged 7%.
The corporation expects an increased collection of ₹271 crore as a consequence. This year, while the corporation has set a target of ₹314 crore, till November 20 it has collected ₹133.20 crore.
These proposals will have to be passed by the Standing Committee and the House of the EDMC before they take effect however.
The revised budget estimates peg the total revenue below the estimates announced earlier at ₹4.18 lakh compared to ₹5.1 lakh, however, the estimates continue to be higher than the actual collections of 2017 at ₹1,72,838.11 lakh.
