GMC rolls back property tax hike

Time of India

5 hours ago

Ghaziabad: Ghaziabad Municipal Corporation (GMC) board on Monday repealed its earlier decision to hike property tax in the city. The new tax structure came into effect on April 1 this year, but there has been growing opposition to it from RWAs and trader associations, forcing councillors of each ward to request the board to reconsider its decision.
Mayor Sunita Dayal called a special board meeting to discuss the issue, and after a heated debate in the house, the board repealed the decision. The board meeting was attended by Ghaziabad MP Atul Garg, MLAs Sunil Sharma from the Sahibabad assembly constituency, Sanjeev Sharma from the city and Ajitpal Tyagi from the Muradnagar constituency.
Dayal said, "The hiked property tax stands repealed. GMC will not send notices to residents on the hiked tax slab.
In the meantime, we have outsourced 100 employees who will carry out an inspection to redress anomalies on the complaint of residents over erroneous tax notices."
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However, municipal commissioner Vikramaditya Singh Malik said, "The GMC board's decision will be sent to the state govt and since the issue is also sub-judice — as a case has been filed in Allahabad HC — we will wait for the state govt and the court's decision before the board's decision is put into effect."
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Former GMC councillor Rajendra Tyagi, in the last week of May, filed a case in the HC against GMC's decision to impose an increased property tax.
Tyagi said, "As per municipal rules, GMC can hike property tax once every two years. In FY 2023-24, the tax was increased by 10% and for this financial year, it has been increased again, which is about three to four times higher. It was a violation of rules, so I filed a case. Now, when the GMC board has repealed its decision, on the next date of hearing, which is on July 29, GMC will furnish a reply in which the board's decision will be stated.
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"The court might consider dropping the hiked property tax point, but there are three more points on which the court will still hear the matter. In my plea, I also sought the court's intervention over GMC's decision to levy a uniform tax slab on all types of properties. As per municipal rules, a municipal corporation will give a rebate of 25% of the Annual Rental Value (ARV) on residential buildings that are 10 years old, 32.40% of ARV on buildings that are between 10-20 years, and 40% of ARV on buildings over 20 years old," Tyagi added.
The property tax rates before April 1 were between Rs 0.32/sq foot on properties with less than 12m of road width, Rs 0.48 to Rs 2 for roads 12–24 metres wide and Rs 0.65 to Rs 2.4 for wider roads. The revised rate is between Rs 0.75/sq foot to Rs 4/sq foot. In March this year, the board passed the proposal to link tax with the DM circle rate. GMC calculates tax based on the annual rental value (ARV) of a property.