Property Tax Hike To Give South Delhi Civic Body Rs 80 Crore Extra

A wide number of categories of non-residential properties in south Delhi should start bracing for a massive hike in their property taxes.

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A wide number of categories of non-residential properties in south Delhi should start bracing for a massive hike in their property taxes. 

After remaining in cold storage for over five years, some of the recommendations of the Third Municipal Valuation Committee (MVC) have been accepted by the Standing Committee of South Delhi Municipal Corporation (SDMC). The corporation hopes to earn Rs 70-80 crore additional revenue through these changes. 

“While the committee has decided that most of the factors like unit area value, use factor, categorisation of colonies — which are used to calculate property taxes — will remain unchanged, some recommendations for change in use and occupancy factors have been approved for industrial and non-residential properties,” a senior official said.

Property tax in Delhi is calculated on the basis of six factors — total covered area, unit area values (Rs per sq m), age of property, occupancy, structure and use. Doubling or tripling a factor has a direct corresponding double/triple effect on the final property tax.

Private educational institutes, industrial units (even if empty), vacant land plots, banquet and cinema halls, clubs, properties with telecom towers will be impacted. “The biggest impact will be on rented industrial plots. If someone is paying Rs 25,600 for a 91-meter plot in a D-category area, it will become Rs 51,200 once the changes come into effect,” an official explained.

Business commercial and industrial plots, with 2 as their ‘use’ factor, will now calculate their property taxes based on a factor of 4, even if it is vacant. Similarly, for private educational institutes, the use factor has been increased to 3 irrespective of areas. “Earlier there were three categories of use factor 1, 2 and 3 depending upon the area,” the official said. 

For Banquet halls and barat ghars, the use factor will be increased from the existing 4 to 6 and entertainment units will pay at the rate of 4 instead of the existing 3. For the premises with a telecom tower, the use factor has been doubled to 4. 

Owning a piece of vacant land, too, will get expensive as the multiplier factor for vacant plots has been increased from 0.3 to 0.5. While other factors remain unchanged, occupancy factor has been changed from 1 to 2 for non-residential properties. “No change, however, has been made in self-occupied properties,” the official said.

Economic Times, Delhi/NCR

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