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Friday, February 3, 2023
HomeNewsReal EstateGMC board hikes house tax by 10% from April 1

GMC board hikes house tax by 10% from April 1

Sanjeev Sinha, chief tax assessment officer of GMC, said, "The house tax rate in Ghaziabad is one of the lowest in the state. So a proposal from our side was given to make it compatible with the circle rate, which was struck down by the board. The board, however, agreed to hike it by 10%, effective April 1, 2023."

The Ghaziabad Municipal Corporation (GMC) board on Saturday okayed a proposal to hike house tax by 10% for the next fiscal.

The increased house tax will apply on 4.28 lakh properties and boost the corporation’s coffers by an additional Rs 16 crore, officials said.

Sanjeev Sinha, chief tax assessment officer of GMC, said, “The house tax rate in Ghaziabad is one of the lowest in the state. So a proposal from our side was given to make it compatible with the circle rate, which was struck down by the board. The board, however, agreed to hike it by 10%, effective April 1, 2023.”

“The revised house tax will be levied on 4.28 lakh properties and help GMC to earn an additional revenue of about Rs 16 crore in the next financial year,” he said.

The house tax was raised after taking the incumbent councillors into confidence.

“GMC officials wanted to hike house tax in accordance with the prevailing circle rate but that would have led to a steep increase in the same, which we could not have afforded in an election year,” said councillor Himanshu Mittal. “But on Saturday, a consensus was reached and the GMC board gave its nod to a 10% hike.”

The GMC employs annual rental value as a method to calculate house tax. “GMC provides for roads, electricity, water pipeline and other amenities in the vicinity of a building and based on the level of services provided, we charge between 33.5% and 75% of the annual rental value on the custodian of establishments,” he said.

The GMC board also passed the revised budget in which revenue generation from different sources has been pegged at Rs 948.48 crore in the current financial year. And if that is added to the previous balance which was Rs 452.97 crore, the amount at GMC’s disposal comes to be Rs 1401.45 crore.

The expenditure for the current financial year has been computed at Rs 1344. 5 crore.

The GMC’s present term will lapse on January 23 and with elections delayed over OBC reservation, an ad-hoc body will carry out the day-to-day executive functions of the civic body.

In the 100-member house in GMC, the BJP has 57 members, followed by BSP (13), while the remaining are from the Congress, the SP and independents.

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