EDMC seeks financial aid from AAP govt for survival

The cash-strapped East De-lhi Municipal Corporation, in its budget proposal on Tuesday sought immediate help from the Delhi government for its survival.

In the meeting, it was revealed that estimated earnings in next financial year after imposing the proposed taxes are expected to increase by over '100 crore. However, due to galloping expenditure, '2,200-crore deficit budget is likely to create more complications.

Presenting the budget proposal for financial year 2016-17 and the revised budget for 2015-16 in a special meet of the standing committee of the civic body, commissioner Amit Yadav proposed a professional tax, a betterment tax and an education cess to augment revenue generation.

The professional tax as proposed will be '1,200 for annual income of '5-10 lakh for the salaried professionals, consultants, entrepren-eurs and traders, '2,400 in case of annual income upw-ard of '10 lakh and '2,500 in case of annual earning/turnover of above '25 lakh.

Presenting the budget, Mr Yadav said that as per Delhi Municipal Corporation Act 1957, municipal corporatio-ns can impose seven types of taxes but presently only two taxes are being realis-ed. The betterment tax will be imposed on land, buildi-ngs and its portions, at a ra-te of 15 per cent of the property tax. The new taxes are expected to generate '30 crore in the initial year, he said. An education cess was also proposed in the budget, which will be 5 per cent of the property tax payable on land, buildings and its portions, he said.

Besides the new taxes, the commissioner also proposed a hike of 1-2 per cent in the property tax for diffe-rent categories of colonies under the East Delhi Municipal Corporation.

The proposed revisions in property tax rates in case of ‘A’ and ‘B’ categories of residential properties will be increased from the existing 12 per cent to 14 per cent. The proposed hike in property tax in case of ‘C,’ ‘D’ and ‘E’ categories of properties will be just one per cent.