Published On : Tue, May 13th, 2014

Nagpurian be ready for 3 new taxes, property tax to go upto 70 pc

Nagpur News : In what may come as a major setback to citizens already reeling under the burden of steep price rise, the BJP led Standing Committee of Nagpur Municipal Corporation has ayed a new taxation pattern which is likely to increase burden of property tax by 30 to 70 per cent.

According to information here the NMC has ascertained Annual Rental Value with Ready Reckoner as base. The city has been divided into six parts for levying the new taxation system.

As per the new taxation pattern there may well be an increase in property tax between 30 to 70 per cent. Apart from this, it has also been decided that property tax would be reviewed on February 20 every year.

Moreover, city residents likely be burdened by three new taxes including road tax and an additional water and sewerage tax.

The Standing Committee led by chairman Balya Borkar, after detailed discussions, cleared the proposal for imposing new property tax norms. The proposal would now be placed before the House during next general meeting and then would be forwarded to the State government.

The tax committee had proposed imposition of the new tax from April, 2014. But even if cleared by both the NMC and the State government, chances for the new tax pattern to be imposed from the present financial year are bleak.

While speaking to media persons after the meeting, Borkar said, efforts have been made to keep the increase in tax rates as low as possible for greater good of people. He further hoped that tax collection could be increased by as much as 50 crore as per the new tax collection pattern. Whether the new tax collection pattern is to be imposed from the present financial year or the coming year would be decided by the House, Borkar asserted.

Owners to assess tax

Standing Committee chairman Balya Borkar also informed that as part of the new taxation pattern property owner themselves would be able to calculate property tax.

The NMC is preparing a software through which owners would be able to estimate tax from the comfort of their homes. Borkar also said that a survey would commence on 1,000 properties in the city from May 27, as part of which calculation of tax would be done through old and new tax patterns.

Tax pattern

While revealing details of the new pattern chairman of tax committee Girish Deshmukh said that for a 2,000 square feet land in Ramdaspeth with 186 sq metre built up area, the annual property tax would come up to 6,121. Whereas if the entire property has been let out on rent the tax would go up to 23,443.