SDMC proposes increase in property tax to boost revenue; AAP opposes

The proposal in the budget comes ahead of civic polls due next year

Seeking to augment its revenue, the South Delhi Municipal Corporation on Tuesday proposed in its budget to increase property tax levied on residential and commercial properties, and reduce the number of rate slabs from three to two.

Residential, commercial and non-residential plots (of up to 150 sqm) are currently divided into three categories in the city -- 'A-B'; 'C-E' and 'F-H' categories.

"I propose that for the financial year 2022-23, the number of categories should be reduced from three to two -- 'A-E' and 'F-H'," Bharati said, while presenting revised budget estimates for 2021-22 and budget estimates for 2022-23 at the Civic Centre here.

The budget has proposed increase in property tax as follows: 14 per cent tax in for residential properties in A-E category and 12 per cent in F-H category. Currently, 12 per cent tax is charged in A-B category, 11 per cent in C-E category and seven per cent in F-H category, a senior official said.

Similar for commercial category, in A-D category it is proposed to be 15 per cent, and 12 per cent in E-H category; and for special category, it is 20 per cent, the official said. The current rates are 15 per cent tax in A-B category, 12 per cent in C-E category and ten per cent in F-H category, a senior official said.

The municipal commissioner said that property tax rates in 'A' through 'E' slabs in residential category, have not been raised in the last 10 years, he said.

He also said that to mark the occasion of 75th year of India's Independence, 'Shaheedi Park' and Bollywood Park' are to be developed on the lines of the 'Bharat Darshan Park'.

The budget comes ahead of civic polls due next year.

Senior AAP leader and party's MCD in-charge Durgesh Pathak objected to the proposed increase in property tax, and alleged that the SDMC has presented a budget that "completely lacks vision and only includes ways of looting the people of Delhi." He appealed to the people of Delhi to "abstain from filling the unreasonable increased taxes (if it gets passed), and said that AAP will give immediate relief to the people of Delhi if it comes to power in the municipal corporations".

All three civic bodies are led by the BJP for the last nearly 10 years.

Later, Commissioner Bharati also took questions from reporters.

According to the SDMC budget, the revised budget estimates for year 2021-22 stands at Rs 2,273 crore, while the budget estimate for the year 2022-23 stands at Rs 2,605.43 crore.

Asked if the proposal to increase property tax is not approved by the legislative wing of the corporation, how it will meet the revenue requirements, the commissioner said, "We will then have to go for the PPP model".

According to the budget, SDMC has been disposing of 51 lakh metric tonne legacy waste and is likely to dispose of 100 per cent legacy waste by December 2023.

"Our Swachh rank will improve, once we do 100 per cent waste collection, segregation and processing," he told reporters.

Officials said the vision in the budget is also to have one dispensary in each ward.

This year, the SDMC has constructed eco-friendly CNG-based cremation centers at Punjabi Bagh, Green Park and Subhash Nagar. CNG-based cremation centers are also being constructed at Sarai Kale Khan and Dwarka, they said.

Also, on the lines of Nandan Van Park opened in Greater Ksilash area, work is also underway to open similar park in New Friends Colony through CSR funds, which is targeted to be completed by December 15, the budget said.

Woodland Adventure Park in Dwarka Sector-19 also expected to be opened by January, it said.