SDMC again proposes property tax hike; public health spending up after dengue spike this year

New Delhi: Already having withdrawn a previous hike in property taxes, the South Delhi Municipal Corporation on Tuesday again introduced a hike in property taxes for both residential and non-residential — this time, also proposing that the number of categories for tax slabs be reduced to two.

Earlier, there were three slabs for both residential and non-residential property taxes but SDMC Commissioner Gyanesh Bharti, while presenting the revised budget estimate on Tuesday announced that these will be cut to just two and the tax rates will be increased to boost projected revenue for the financially-ill corporation.

Currently, residential, commercial and non-residential plots in the capital are categorised as A-B, C-E and F-H categories. In residential properties, A-B must pay 12 per cent tax, C-E 11 per cent and F-H 7 per cent.

According to the newly proposed categories, 14 per cent tax will be levied on residential properties in the A-E category and 12 per cent for those in the F-H category.

Similarly, for commercial properties, A-B currently pay 15 per cent, C-E 12 per cent and E-H 10 per cent. Under the new slabs, the A-D category will have to pay 15 per cent tax (increase for C, D & E categories) and E-H categories will have to pay 12 per cent. Other than this, in a special category, the tax will 20 per cent, as per officials in SDMC.

According to Bharti, property taxes have not been raised in the past 10 years in A-E slabs. Moreover, the Commissioner said the waiver of 15 per cent on timely payment is also proposed to be reduced to 10 per cent.

Bharti said in case the property tax increase is not accepted by the legislative arm of the SDMC, the corporation will have to go for the PPP model.

Amid this, the civic body did not clarify how they plan to ensure that salary delays and non-payment do not happen as they have been a common trend in the past few years. But the municipality's budget estimates were thrown off by the dengue spike this year, the effect of which was seen in an increased spending estimate for the public health and sanitation departments.

According to official reports, the proposed revenue for the civic body in FY 2021-22 was Rs 4,894.16 crore and the revenue in the proposed revised estimate is shown to be Rs 4,293.26 crore. The proposed revenue for FY 22-23 is at Rs 4,821.43 crore. Whereas for proposed expenditure in FY 2021-22 was Rs 5,048.20 crore and the proposed revised estimate is at Rs 4,805.93 crore. The proposed expenditure for FY 2022-23 is Rs 4911.74 crores.

According to senior officials in the SDMC, the municipality's deficit will be fulfilled by access funds and various other holdings within the SDMC.

Bharti added that SDMC has allotted land for a new landfill site and construction of multilevel parking with the capacity to accommodate 399 vehicles in GK-1 Market and another parking facility having the capacity to accommodate 86 vehicles in Nizamuddin is in progress.

The SDMC has been disposing of 51 Lakh Metric Ton Legacy Waste and is likely to dispose of 100 per cent Legacy Waste by December 2023, Bharti said, adding that plans to shift all SDMC services related to citizens online by next year have also been confirmed.