South Delhi Municipal Body Likely To Hike Property Tax By 33%
After the South Delhi Municipal Corporation (SDMC) proposed a hike in property tax on December 4 in its Budget estimates for the financial year 2019-20, the media reports suggest that the civic body has now approved the preliminary recommendations made by the fourth Municipal Valuation Committee (MVC). Once accepted by the capital’s lieutenant governor, will lead to a hike of 33 per cent in property tax.
For now, the report has been put out in the public domain for suggestions and objections of the citizens. The residents can give their feedback for the next 30 days. Once the feedback is received, the report will then be sent to the lieutenant governor for final approval.
The property tax is calculated based on various components, including unit area values (UAV), use factor, age factor, occupancy and structure factor. In the report, major changes have been proposed in the unit area values and use factor, while the other components remain unchanged.
The residential property owners will witness major setback in the unit area values. Below is the chart of rate change:
1 UAV MVC-4
According to the MVC report, if the tax is not hiked, the corporation could face a revenue-expenditure gap of Rs 7,156 crore in the financial year 2020-21.
Additionally, a new category of colonies is proposed by the MVC. The new category will be called H1 with 130 new colonies. These colonies will include unauthorised areas, JJ clusters, rural villages, etc. Also, categories of some colonies have changed based on the benefit of developments in the area. For instance, some localities have benefited from the coming of metro, commercial streets, etc., while some of these colonies have witnessed a downfall due to absence of these amenities.