+
AMC reduces property tax rebate from 75% to 50% for GIDCs
Real Estate

AMC reduces property tax rebate from 75% to 50% for GIDCs

The Ahmedabad Municipal Corporation (AMC) will now reduce the property tax of Vatva, Naroda, Odhav and Kathwada to 50% from 75% to Gujarat Industrial Development Corporation (GIDC).

The standing committee is yet to give final approval to the proposal. Earlier, the civic body proposed the standing committee revising the rebate rate from 75% to 50%.

Earlier, AMC used to retain 25% of the total property taxes paid and returned 75% of the collected taxes to GIDC estates to carry out development and maintenance activities, including roads, water and sewerage.

According to an official, AMC collects nearly Rs 25-30 crore property tax per annum from GIDC estates like Vatva, Naroda, Odhav and the new industrial estate of Kathwada.

The official said that the civic body introduced this proposal to promote industrial activity in GIDC estates. Currently, the civic body is under financial stress due to the loss of revenue during the Covid-19 lockdown and plans to reduce the incentive.

Former president of Vatva Industries Association, Ankit Patel, told the media that property tax is a significant cost component for industries.The reduction in property tax will increase the compliance costs of the individual industries. It will also affect the industry associations. The maintenance of common infrastructure is already a challenge with a 75% rebate. The proposal of reduction will also be a challenge for the associations.

Image Source

Also read: Ahmedabad Municipal Corporation demolishes 3 illegal constructions

The Ahmedabad Municipal Corporation (AMC) will now reduce the property tax of Vatva, Naroda, Odhav and Kathwada to 50% from 75% to Gujarat Industrial Development Corporation (GIDC). The standing committee is yet to give final approval to the proposal. Earlier, the civic body proposed the standing committee revising the rebate rate from 75% to 50%. Earlier, AMC used to retain 25% of the total property taxes paid and returned 75% of the collected taxes to GIDC estates to carry out development and maintenance activities, including roads, water and sewerage. According to an official, AMC collects nearly Rs 25-30 crore property tax per annum from GIDC estates like Vatva, Naroda, Odhav and the new industrial estate of Kathwada. The official said that the civic body introduced this proposal to promote industrial activity in GIDC estates. Currently, the civic body is under financial stress due to the loss of revenue during the Covid-19 lockdown and plans to reduce the incentive. Former president of Vatva Industries Association, Ankit Patel, told the media that property tax is a significant cost component for industries.The reduction in property tax will increase the compliance costs of the individual industries. It will also affect the industry associations. The maintenance of common infrastructure is already a challenge with a 75% rebate. The proposal of reduction will also be a challenge for the associations. Image Source Also read: Ahmedabad Municipal Corporation demolishes 3 illegal constructions

Next Story
Infrastructure Urban

Naidu Seeks Rs 563 Crore For AP Sports Infrastructure

Andhra Pradesh Chief Minister N Chandrababu Naidu has sought Rs 563 crore from the Centre to boost sports infrastructure in the state, including Rs 538 crore for stadium development and Rs 25 crore to host the Khelo India Martial Arts Games 2025. Naidu made the request during a meeting with Union Youth Services and Sports Minister Mansukh Mandaviya in New Delhi on Wednesday.The CM urged early completion of Khelo India infrastructure projects in Tirupati, Rajahmundry, Kakinada, and Narasaraopeta, and called for an international-standard badminton training centre and a national aquatic sports hu..

Next Story
Infrastructure Transport

Tough Bidding Norms Slow NHAI Road Project Awards

Stringent bidding rules imposed by the Ministry of Road Transport & Highways (MoRTH) have led to a slowdown in project awards by the National Highways Authority of India (NHAI), despite a robust Rs 3.5 trillion pipeline. According to an HDFC Securities report, the shift to more cautious developer models now favours firms with strong balance sheets, as tighter qualification norms limit aggressive bidders.The revised norms mandate additional performance security, targeting the exclusion of players that previously submitted low bids—often 25 to 40 per cent below NHAI cost estimates—raisin..

Next Story
Infrastructure Transport

Mumbai Gets Coastal Nod for Next Promenade Phase

As Mumbai prepares to open two major sections of its expansive seafront promenade this week, the city’s civic authority has secured a key coastal clearance to advance further construction. The Maharashtra Coastal Zone Management Authority (MCZMA) has approved the commencement of work on the segment between Haji Ali and Baroda Palace, with tendering expected soon after project cost assessments.The promenade, stretching 7.5 km in length and 20 metres wide, is being designed as a flagship open space for walkers, joggers, and cyclists. Two critical stretches—2.75 km from Tata Garden to Haji Al..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?