Panel wants more colonies in high tax net

Upgradation of colonies within one kilometre of Delhi Metro lines to a higher category, factoring in the city land value and rent value of the properties are some of the measures suggested by the municipal valuation committee (MVC) to augment the property tax receipts of the MCD. The committee’s report was submitted to the standing

committee of the MCD on Wednesday, which has constituted a sub-committee to study the proposals. The municipal commissioner K.S. Mehra has also been asked to submit a plan of action by next week on how and by what time more people can be brought within the property tax net. The cash-strapped MCD has been looking for ways to augment its financial resources.
The MVC, a four-member independent committee appointed by the Delhi government, has suggested that at least 168 colonies falling within one km distance of Metro lines need to be upgraded to a higher category, as prescribed under the unit area method (UAM) adopted by the MCD in 2004. For instance, at least 12 colonies could be upgraded from B to A, 20 from C to B and at least 42 from D to C. Incidentally, A, B, C and D are the four top-most category for the purposes of property tax.
Further, the MVC has recommended doubling the factor for rented commercial properties, increasing the factor for vacant land. Also, for charging property tax from malls, multiplexes, hotels, non-residential use of farm houses and showrooms with covered areas of more than 1,500 square feet and above, the factor of four should be increased to six, the MVC has suggested.

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