East civic body proposes three new taxes in budget

NEWDELHI: To cope with its losses, the East Delhi Municipal Corporation (EDMC) on Monday proposed three new taxes — education cess, professional tax and betterment tax — in the budget proposals for the next fiscal.

Presenting the estimates, EDMC commissioner Puneet Goel proposed a betterment tax, 15% of the annual property tax. This is expected to generate a revenue of ₹10 crore a year.

The education cess is proposed to be 5% of the annual property tax, and will generate an annual income of ₹10 crore, officials said.

“Once implemented, the property tax will increase from ₹3,000 to ₹3,600 for a 100 sqm residential property in category D (such as Preet Vihar and IP Extension). For category F (such as Dilshad Colony), the property tax will increase from ₹1,050 to ₹1,250. The betterment tax will be imposed in areas with better connectivity, parks, wider roads and other facilities,” a senior EDMC official said.

Goel said the civic agency has been taking all possible measure to cut down its expenses and generate revenue.

“We have increased our revenue collection by 35% this year (2018-19). But with an arrears of ₹1,700 crore pending towards employees salaries, and a BB (-) rating given by a domestic rating agency, it has become difficult for us to procure loans,” Goel said.

Currently, there are 2.15 lakh taxpayers in east Delhi and the civic agency is trying to increase their numbers to four lakh or more with help of a door-to-door survey.

The civic officials are also persuading political leaders to implement the Municipal Valuation Committee ( MVC)-III report.

“The report suggested that ‘categorisation’ of several residential colonies in east Delhi, Income Expenditure Debt has increased from ~2,421 cr to ~2,620 cr Betterment tax: 15% of property tax (imposed on areas where property rates increased due to development works) on annual income on traders with of ₹10 lakh and annual turnover of above ~20 lakh and above for class-i theatres to increase from ~1,000 per show instead of ~10 and Class-ii theatres will pay ~1,000 instead of ~7. on annual income of ₹5 to 10 lakh

National Thermal Power Corporation to be roped in for converting solid municipal waste and lechate to generate electricity

Scheme for reconstruction of 13 schools buildings, free sanitary vending machines in 25 schools

Treated effluent plants at Kondli and Yamuna Vihar to irrigate 1338 parks Priya Vihar, Dayanand Vihar, AGCR in Anand Vihar be changed and upgraded. This would have meant a higher house tax slab for these areas,” a EDMC official said.

All commercial properties with an area of 139 square metres or more would be added to Category A, which is the highest tax paying slab, as per the report.

Currently, only the DDA Sports Complex of east Delhi falls in this slab.

Among the other schemes, the Education cess: 5% of property tax, expected to earn the east Delhi municipal corporation close to

~10 crore

Identified 30 new sites for establishing surface parking

Redevelopment of 74 parks and developing vertical garden at 13 places

Insurance schemes for kids studying in primary schools Training program for economically poor women in embroidery and crafts

Development work in Ghazipur cattle market

Goel has proposed developing Swami Dayanant Hospital into a 600 bed multi-specialty facility after investing ₹450 crore.

He has also proposed an insurance scheme for children in EDMC schools with a cover of up to ₹50,000 for accidental death or injury.

The other proposals include assistance for setting up solar plants in buildings with an electricity consumption of over 25 kilowatt, the East corporation commissioner said.