The South Delhi Municipal Corporation (SDMC) has decided to roll back the hiked property tax rates for commercial rented establishments, educational institutions, banquet halls among others.
The decision to roll back tax hikes will benefit traders. A senior SDMC official said that it was decided to put the decision to hike property tax on hold for now.
As per the proposal tabled in the house meeting earlier, the tax on rented commercial properties was increased on the recommendations of the Municipal Valuation Committee-3 (MVC-3) which was implemented in April last year.The MVC-3 had recommended nearly doubling the property tax on rented commercial premises, telecom towers, vacant commercial lands, vacant industries, marriage halls, banquets, educational institutions, entertainment and recreation facilities. These recommendations were implemented in April 2020 but were approved in July 2020 with retrospective effect. A senior SDMC official said that the corporation will bear losses of Rs 70-80 crore per year with the decision to roll back the hike.
According to estimates, there are around 9000 commercial properties that have been rented out by the civic body in its areas so once the proposal is implemented the SDMC can generate a good revenue.
