Panel wants more Delhi colonies in high property tax slot

NEW DELHI: A panel reviewing property tax rates in the national capital is understood to have recommended re-categorisation of a number of colonies into high-tax slot, taking into account various factors including their proximity to Metro lines.

The Municipal Valuation Committee constituted by the Delhi government has suggested major changes in the existing categorisation of residential colonies in its report, which is expected to be submitted to the MCD soon.

Areas under the jurisdiction of MCD are at present divided into categories A to H depending on the infrastructural facilities there. Official sources said the independent panel has recommended that nearly 70 to 80 more residential colonies be designated as category A.

At present, there are 28 category A colonies in Delhi, where the tax rates are higher.

"For re-categorisation, the panel is looking at a number of yardsticks including location, physical infrastructure and commercialisation. Proximity to Delhi Metro lines is also being considered as a factor," a source said.

In the 'markings' being assigned to the colonies, proximity to Metro lines is contributing about 10 per cent.

The areas near Metro lines and stations have seen increased commercialisation and infrastructure improvement and the property rates have also shot up in those localities in recent times.

Any proposal by the Municipal Valuation Committee, however, will have to be approved by the legislative wing of MCD. Last time in 2007, the committee had recommended increase in the unit area value based on which the tax rates are arrived at, but the MCD had rejected that suggestion.

However, facing a cash crunch, the civic body had in their budget for 2010-11 announced increase in tax rates in various categories.