The entire MCD area has been divided into eight categories from A to H, wherein category A stands for upscale colonies. The Municipal Corporation of Delhi (MCD), in its meeting of the House held on Monday, gave the final nod to the increased taxes that include 2% rise for residential properties falling under category A and B like Defence Colony, New Friends Colony, Vasant Vihar, Anand Lok among others. The other categories from C to H will see a rise of 1% from the previous rate from 10% to 11% for categorises C and E and from 6% to 7% for houses under category F to H.

The MCD commissioner, K S Mehra had proposed a flat increase of 5% across all categories.``We have tried reducing the burden on taxpayers,'' said leader of House Subhash Arya.

For commercial properties such as multiplexes, big shops etc there has been increase of 10%. Said Arya: ``The property tax rate payable by multiplexes, petrol pumps etc has been increased from 10% to 20% while the rate for commercial properties falling under A and B categories has increased from 10% to 15%, from 10% to 12% for category C to E and there is no change in the rates for category F,G and H.''

Meanwhile, a committee has been constituted by the civic agency to further study the possibility of taxing the telecom and electric companies operating from MCD land. A first time tax on production of electricity for commercial purposes and on the heavy duty power generators was also approved by the civic agency.

Source: Times Of India Property tax hike not steep, house owners get some relief