SDMC rolls back commercial property tax hike

New Delhi: The BJP-ruled South Delhi Municipal Corporation (SDMC) on Monday decided to roll back the increased rate of taxes for special commercial or non-residential properties less than 150 square metres for the financial area 2018-19, benefittting 30,000 commercial properties. There are about 4.5 lakh property tax payers under SDMC’s jurisdiction. The move will cause a loss of `35 crore to the civic body.

Now SDMC, which also introduced 1 per cent education cess on property tax, is exploring options to withdraw the new cess levied against the party’s poll promise of no baronial any new or additional tax burden.

The leader of Congress in the SDMC, Abhishek Dutt, pointed out that the corporation is charging education cess on annual value whereas it should be charged on tax value.

Mr Dutt also wrote to SDMC commissioner Puneet Goel, saying that following the income tax and other departments, the SDMC should make necessary changes in the policy and immediately charge education cess on tax value only. He said that the balance, which has been collected so far, should be refunded or adjusted in the next year’s property return.

Mr Dutt told this newspaper that while on the one hand the ruling BJP rolled back the increased property tax to cover up its failure, on the other hand it is charging about 10 per cent of tax value of property in the name of 1 per cent education cess.

Wrong calculation of education cess on tax value has not gone well with the BJP state leadership and it asked the party’s civic leadership to withdraw it.

SDMC mayor Narender Chawla said the property tax rates in respect of the above stated properties have been rolled back to bring the rates back to the level of rates pertaining to the financial year 2017-18. “The rolled back rates will come into force with immediate effect,” Mr Chawla added.

SDMC standing committee chairperson Shikha Rai said: “Around 30,000 property owners or occupiers will be benefited with this liberal decision of the SDMC. It wanted to give relief to the small commercial property owners with an aim to protect them from any enhanced amount of property tax.”