Those living in bungalows and flats in posh areas should expect a steep rise in their property tax bill this municipal election year.
After almost six years, municipal commissioner Vijay Nehra in his Rs 8,907 cr budget proposed a 93% to 64% increase in property tax for owners of bungalows with a carpet area more than 100 sq m depending on the neighbourhood, and a 48% increase for owners of flats with a carpet area greater than 750 sq ft. Even pol residents in the Walled City will pay Rs 307 extra.
Nehra’s budget proposal has to be ratified by the Ahmedabad Municipal Corporation (AMC) standing committee and general body before it comes into effect.
Elaborating on the increase in tax, Nehra said the base rate was raised for residential clusters from Rs 16 to Rs 22 and values of factors for properties in posh location and leased properties were also increased from 1.62 to 1.92.
If you are the owner of an independent bungalow, the ownership factor in the tax formula has been increased from 1.5 to 1.8. In case of commercial properties, the base rate has been increased from 28 to 34.
In all, an additional tax burden of Rs 244 crore will be levied on Amdavadis, of which Rs 218 cr will be additional property tax on 16 lakh properties and Rs 26 cr will be derived increased vehicle tax.
“We have withdrawn the 1% relief in vehicle tax for autorickshaws and in case of private vehicles in the luxury segment, which cost more than Rs 15 lakh, we have raised the tax rate to 3% from 2.5%,” says Nehra.
The budget plans to invest Rs 968 cr in 20 flyovers, Rs 152 cr on 15 rail bridges, Rs 600 cr for road modernisation, Rs 500 crore for new multi-level parking complexes in the city and two biodiversity parks worth Rs 200 cr.
Nehra said a special recreation zone like Law Garden will be made in every ward, and one major arterial road in each ward will be modelled on the new CG Road design. He added that Ahmedabad pays the lowest tax among major cities at Rs 744 per capita while the AMC in turn spends Rs 10,727.14 on every citizen. Surat collects an average of Rs 2,302.76 from every citizen while its civic body spends Rs 12,442 on every citizen.
Nehra claimed that the major thrust will be on creating quality sports and social infrastructure. “We will begin work on the Rs 200 cr world-class sports complex and by the end of this budget year we are planning a gymnasium, swimming pool and mini sports complex in every ward.”
After announcing budget provisions for the 600 new electric buses, Nehra said that these buses will have overhead electric charging.