Ghaziabad municipal corporation brings in new property tax regime

The Ghaziabad municipal corporation is gearing up to implement the new property tax structure, the proposal of which will be presented before the executive committee in a meeting scheduled on Friday. According to the new tax structure, different colonies have been clubbed together based on per square feet of rental values on carpet area and put under different categories, which will determine the tax to be paid to the civic body.

Civic officials said the present tax structure has uniform rental values for all the localities. As a result, the owner households in prime localities as well as the ones in lower-segment localities end up paying similar taxes.

“Under the new structure, different colonies have been clubbed together and put under A, B and C categories. Different rental values have been defined for all the colonies under the three categories based on location of property on roads having width of less than 12m, on roads having width of 12-24m and roads having width of more than 24m,” said Sanjeev Sinha, the corporation’s chief tax assessment officer.

Category A comprises prime and upscale localities; category B comprises localities which are less developed while category C involves localities which are least developed.

The circle rates notified by the district magistrate are also applicable to the properties based on the road width.

According to the existing tax structure, the rental values of properties range from 0.60 paise per square feet to ₹1.9 per square feet for different colonies. Under the new property tax slabs, colonies in category A will have rental value in the range of ₹1.75 to ₹4 per square feet; category B colonies will be taxed 0.50p to ₹3.5 per square feet while category C colonies will have rental values in the range of 0.30p to ₹3 per square feet.

The rental range includes rate for RCC houses, permanent roof and temporary houses, besides rate of land and plots.

“For the implementation of the new structure, the corporation had invited public objections in February last year. We received 318 objections, all of which were disposed earlier this year. The new tax structure will bring relief to the economically weak sections of the society,” said Sinha. The corporation plans to introduce the new property tax structure from this fiscal (2022-23).

Top officials said the move is likely double the tax revenues of the municipal corporation. “Under the old tax regime, we were able to collect ₹150 crore as property tax annually. We will be able to earn double of this amount once the new tax structure comes into effect. The proposal will be presented before the executive committee and then before the board. The new tax structure has been implemented in most of the municipal corporations in UP,” said municipal commissioner Mahendra Singh Tanwar.

Sources said councillors will strongly oppose the new property tax structure. “The move will meet opposition as it will burden the common man. The services of the corporation have remained the same and they have not done anything to improve the condition of the civic amenities. For instance, there are many parks, which are maintained by locals on their own; the corporation finds it difficult to ensure proper delivery of services,” said Himanshu Mittal, a councillor from Kavi Nagar.

Official sources said the proposal of the new tax structure has the backing of the Uttar Pradesh Municipal Corporation Act and if there is any opposition, the proposal will be forwarded to the state administration, which in all likelihood, will give its approval.