MCD has uploaded the report on its website and issued a public notice inviting objections from the general public. (File photo)NEW DELHI: The fifth Municipal Valuation Committee (MVC) has recommended an increase in six factors – used for calculating the annual value of a property – in its interim report to the Municipal Corporation of Delhi (MCD). If ultimately implemented, this change in computing could result in an increase in property tax in all sectors across the city, including residential colonies, reports Vibha Sharma. Property tax: Increase in six factors needed due to inflation, says committee The committee has pointed out that an increase in these six factors – none has been effected in the past 18 years – is required in the wake of inflation. MCD has uploaded the report on its website and issued a public notice inviting objections from the general public. The annual rateable value of a property is determined on the basis of six factors – base unit area value, total cover area, age of property, occupancy (owned or rented), structural factor (semi-kuccha or pucca) and use factor (residential or commercial). The property tax amount is a certain percentage of this value. “There is a suggestion for increasing the base unit value of a property by 37%. The base unit area values were recommended by the first MVC in 2004 and they have remained unchanged so far,” the report stated. Currently, the base unit area value is Rs 630 for colonies for category A, Rs 500 for category B, Rs 400 for category C, Rs 320 for category D, Rs 270 for category E, Rs 230 for category F, Rs 200 for category G and Rs 100 for category H. The proposed values are Rs 800 for category A, Rs 680 for category B, Rs 550 for category C, Rs 440 for category D and Rs 370 for category E. The committee has recommended 1.1 and 1.2 as the ‘age factor’ for newly-constructed buildings built from 2010 to 2019 and 2020 to 2029, respectively. “The age factor is 0.5 for properties constructed in the 1950s, ‘0.6’ for those in the 1960s and ‘1’ for those built between 2000 and 2010. As there has been no change for properties constructed later, the committee has recommended increasing it,” said a senior MCD official. Considering the rampant development that has taken place in recent times near the airport, the committee has also recommended that Aerocity, which currently is in category ‘G’, be considered as a separate colony and changed to category ‘D’, said a senior MCD official. The committee has also recommended uniformity in the structure factor value for kuccha and semi-kuccha structures as ‘0.7’, instead of the current ‘0.5’ for kuccha and ‘0.7’ for semi-kuccha. The value for pucca constructions will remain ‘1’. To increase transparency and efficiency in administration of tax, the panel has recommended robust use of technology. FOLLOW US ON SOCIAL MEDIAFacebookTwitterInstagramKOO APPYOUTUBE
Source: https://timesofindia.indiatimes.com/city/delhi/property-tax-may-go-up-across-delhi/articleshow/93763383.cms
