Shimla property tax to increase by 4% annually, starting this year

04 Jul 2023 CW Team

The request to raise the tax rate in accordance with the revised formula obtained from the Central government was brought up at the Municipal Corporation meeting in Shimla, the state's capital. This was openly rejected by the council members, and there was a long-lasting commotion over it. The administration then warned that if it was not carried out, the problem surrounding the 40 crore rupee grant would worsen.

Currently, the Central Government provides this grant to the Shimla Municipal Corporation; however, there may be a reduction. The growth of the city will likewise suffer as a result of this. Because of this, a comparable tax structure must be imposed throughout the entire nation, not just in Himachal Pradesh and Shimla.

According to this, taxes will go up once a year. Its rate will be set depending on the GDP of the state's five-year average. Under this formula, the rate of rise will be determined separately each year. Due to the years of the Corona era, the average this time was low. Because of this, a 4% increase has been made.

There was a commotion over this matter with the BJP and the CPI (M) corporator publicly opposing it as well. They protested that this would have an impact on the city's residents, but the administration persuaded them that it was essential for the city's growth. They persisted in protesting in spite of this, and the Municipal Corporation eventually approved the plan to enact the new tax.

“Under the old formula, there was a proposal to increase the tax by 10 per cent in the Municipal Corporation. After the introduction of the new formula, there has been an increase of only four per cent in the tax. Every year, the tax rate in the city will increase. Its direct burden will fall on the people of the city.

For the first time in a year, two tax invoices would be generated, according to Shimla MLA Harish Janartha. “The Municipal Corporation of Shimla will issue two tax bills for the first time to the building owners of the city. Earlier, for the building owners who have paid their tax bills, the remaining bill after the increase will be issued to them separately in the next bill. More than 30,000 building owners in the city pay taxes. The Municipal Corporation earns 21 crores from this. After this increase, there will be an additional income of about one crore rupees,” said Surender Chauhan, Mayor of Shimla Municipal Corporation.

See also:
Pune civic body seals buildings over property tax dues
MC Uses Mobile App to Catch Property Tax Defaulters

Despite objections from the council members, the Shimla Municipal Corporation's monthly meeting at Bachat Bhawan accepted the 4% increase in property tax. The city has also adopted an annual tax rate hike in addition to this. The request to raise the tax rate in accordance with the revised formula obtained from the Central government was brought up at the Municipal Corporation meeting in Shimla, the state's capital. This was openly rejected by the council members, and there was a long-lasting commotion over it. The administration then warned that if it was not carried out, the problem surrounding the 40 crore rupee grant would worsen. Currently, the Central Government provides this grant to the Shimla Municipal Corporation; however, there may be a reduction. The growth of the city will likewise suffer as a result of this. Because of this, a comparable tax structure must be imposed throughout the entire nation, not just in Himachal Pradesh and Shimla. According to this, taxes will go up once a year. Its rate will be set depending on the GDP of the state's five-year average. Under this formula, the rate of rise will be determined separately each year. Due to the years of the Corona era, the average this time was low. Because of this, a 4% increase has been made. There was a commotion over this matter with the BJP and the CPI (M) corporator publicly opposing it as well. They protested that this would have an impact on the city's residents, but the administration persuaded them that it was essential for the city's growth. They persisted in protesting in spite of this, and the Municipal Corporation eventually approved the plan to enact the new tax. “Under the old formula, there was a proposal to increase the tax by 10 per cent in the Municipal Corporation. After the introduction of the new formula, there has been an increase of only four per cent in the tax. Every year, the tax rate in the city will increase. Its direct burden will fall on the people of the city. For the first time in a year, two tax invoices would be generated, according to Shimla MLA Harish Janartha. “The Municipal Corporation of Shimla will issue two tax bills for the first time to the building owners of the city. Earlier, for the building owners who have paid their tax bills, the remaining bill after the increase will be issued to them separately in the next bill. More than 30,000 building owners in the city pay taxes. The Municipal Corporation earns 21 crores from this. After this increase, there will be an additional income of about one crore rupees,” said Surender Chauhan, Mayor of Shimla Municipal Corporation. See also: Pune civic body seals buildings over property tax duesMC Uses Mobile App to Catch Property Tax Defaulters

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