SDMC Strikes Down Plan To Hike Property Tax
The South Delhi Municipal Corporation has decided to do away with its plan to hike property tax rates in its final Budget for the financial year 2018-19. While presenting the Budget Estimates for the financial year 2018-19 (FY19) on December 8, the civic body had proposed a nominal hike in property tax rates.
It was proposed that tax rate for residential properties of category A and B be increased to 14 per cent, an increase of two percentage points from the current 12 per cent.
*Rate for residential properties of C, D and E categories be raised to 12 per cent property tax from the current 11 per cent.*Rate for residential properties of F, G and H categories be hiked to eight per cent tax form seven per cent.
In its Budget Estimates, the North Delhi Municipal Corporation (NDMC) proposed to levy a single tax slab of 15 per cent on residential properties and 20 per cent on commercial properties. As it stands now, there are eight categories of residential properties, with tax rates ranging from 7-12 per cent. On the other hand, financially tattered East Delhi Municipal Corporation (EDMC) proposed the introduction of two news taxes – betterment fee and professional fee – on residential properties, apart from an education cess.
While clearing the final Budget on February 12, the SDMC also announced further rebate for sportspersons.
"Martyrs belonging to the armed forces and the para-military forces and their widows; medal winners in the Olympics, the Asian Games and the Commonwealth Games will get full exemption on payment of property tax for one residential property," the SDMC said.
"Ex-servicemen are to get 30 per cent rebate, on lumpsum payment of property tax, up to June 30, for one residential property," it said.
The SDMC also plans to launch an amnesty scheme for residents of illegal structures. Such taxpayers will not have to pay the penalty or the interest if they are able to deposit the principle amount of their property tax dues.In the coming financial year, the SDMC estimates to earn Rs 4,571.71 crore in revenue and spend Rs 4,977.93 crore. Of the latter amount, 23.76 per cent has been allocated for sanitation, 19.08 per cent for engineering, 18.08 per cent for education and 5.38 per cent has for healthcare.
Changing face of schools
Social infrastructure plays a key role in increasing the value of a real estate market. If Budget proposals of the SDMC are executed well, the worth of this property market would certainly get a boost.
In its Budget for FY19, the civic body proposes that nursery education would be started in all schools under its jurisdiction. The SDMC also plans to install CCTV cameras across the schools in south Delhi — CCTV cameras have already been installed in 62 schools. Apart from that, sports complexes would be developed in 10 schools with the help of the Sports Authority of India.
The SDMC will also construct four new mid-day meal kitchens with “modern, state-of-the-art facilities in one school each for all the four zones.” It will also increase the uniform subsidy of students, from Rs 600 now to Rs 1,100 in future.Besides, the SDMC will develop 77 smart classes, install green boards in 465 classrooms and launch an online portal for the education department.
To improve education quality in SDMC schools, the civic body plans to launch programmes such as Let's Read Programmes, Schools Quality Enhancement Programme and Engagement of Councillors Programme.
Keeping it clean
Delhi has been making headlines in the recent past for all the wrong reasons. Air pollution levels have been fluctuating between poor and hazardous for over a month now. The SDMC has plans of its own to improve the atmosphere.
The civic body proposes to buy only electric vehicles for its staff to keep a check on air pollution. Additionally, the SDMC will be constructing 16 new multi-storeyed automated car parking lots. It will also procure 72 electric cars soon.
The SDMC will also be building 22 toilet blocks to keep Delhi clean. Four new sterilisation centres for stray dogs will also be built in south Delhi.