(Eds: Correcting figure in para 4)
New Delhi, Nov 23 (PTI) Seeking to augment its revenue, the South Delhi Municipal Corporation (SDMC) 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.
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," said SDMC Commissioner Gyanesh Bharati, 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, the official said.
Bharati said that property tax rates in A through E slabs, have not been raised in the last 10 years.
The commissioner 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.
Later, the commissioner also took questions from reporters.
Asked if the proposal to increase property tax is not approved by the legislative wing of the corporation, how will it meet the revenue requirements, Bharati 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. PTI KND