The Aam Aadmi Party (AAP)-led Municipal Corporation of Delhi (MCD) has announced a reduction in property tax on commercial properties. This move comes as a fulfilment of another guarantee given by AAP National Convenor and Delhi Chief Minister Shri Arvind Kejriwal during the MCD elections.
According to AAP Senior Leader and Delhi Minister Shri Saurabh Bhardwaj, the reduction in property tax is a huge relief for traders in Delhi and will make up for the losses caused by the COVID-19 pandemic. He added that this is a significant step towards fulfilling the promises made by the AAP government to support the people of Delhi.
Mayor Dr Shelly Oberoi said that the Municipal Valuation Committee’s recommendations have been implemented in the MCD with effect from April 1, 2023. Dr Oberoi also mentioned that the creation of separate categories for colonies and changing the categories of many colonies will reduce the tax burden on Delhiites.
The reduction in property tax is not limited to commercial properties only, as the use factor for rented commercial properties has been reduced from 2% to 1.25%. Additionally, the use factor for banquet halls, private sector, PGs, and hostels has been reduced by up to 50%. Commercial property owners had to pay property tax amounting to twice the base price due to the use factor being 2, which has now been reduced to 1.25.
In a landmark decision that will assist the trader community in Delhi, the Aam Aadmi Party led Municipal Corporation of Delhi (MCD) has decided to implement the recommendations of the Municipal Valuation Committee (MVC). Announcing the decision in a press conference, today, Cabinet Minister Shri Saurabh Bhardwaj and Delhi Mayor Dr Shelly Oberoi said that this will benefit the taxpayers of Delhi a great deal.
Dr Shelly Oberoi informed that last year the Municipal Valuation Committee (MVC) made some suggestions to the MCD and these suggestions were accepted on 4th November last year. She added that the MCD has taken an important decision to implement the suggestions of the 5th MVC. Dr Oberoi added that on 19th April this year, an order was issued by the MCD highlighting that the suggestions of the MVC had begun to be implemented from April 1 onwards.
Revealing the details of the document, she said that there are 29 parameters and on the basis of that 29 recommendations have been given. The mayor further informed that taxpayers in the city will benefit a great deal from the implementation of these parameters. The various different parameters include use factor, occupational factor, age factor and structure factor. Along with this all the different kind of properties, they could be commercial or residential, banquet hall, baraat ghar, guest house, educational institutions, farmhouses, multiplexes and petrol pumps – they will all benefit from the implementation of the new recommendations.
Highlighting the change in use factor – which is the relation between the property tax to be paid and the base price of the property, the Mayor explained that two kinds of changes have taken place. Some of the properties have been put in categories that are different from where they were earlier, while some new categories have been created. For example, old-age homes, baraat ghar, community halls and farmhouses – new categories have been created for these properties. She also added that the category under which the rented properties in Delhi are placed, the use factor for it has been reduced from 2 to 1.25. She explained that this will provide a major relief, particularly to the commercial rented properties. Similarly, the use factor for five-star hotels has been reduced from 10 to 8, for banquet halls has been reduced from 6 to 4, for private schools has been reduced from 3 to 2 and for paying guest/hostels it has been reduced from 4 to 2.
Mayor Dr Shelly Oberoi said that the Aam Aadmi Party has always spoken about providing relief to the taxpayers of Delhi and now since the AAP has a majority in the MCD it is further working in this direction. She said that AAP-led government has always provided relief to schools and educational institutions in Delhi. She added that the societies and colonies that will segregate and dispose off 100 percent of their wet waste in a scientific manner will be eligible for an additional 5 percent tax rebate as per the recommendations of the MVC.
She concluded by saying that the AAP-led MCD will continue to implement policies that will benefit the citizens of Delhi across all sections and it will ensure that the tax burden on every citizen is the least. “We are aware that the citizens of Delhi work extremely hard to earn their moneys and therefore the reduction in taxes across the sections are a very happy decision for the taxpayers of Delhi. The Aam Aadmi Party government will continue to work hard to ensure tax relief to all the citizens of Delhi,” she said.
Speaking at the press conference, AAP Cabinet Minister Shri Saurabh Bhardwaj said that the Aam Aadmi Party and the residents of Delhi would like to thank Mayor Dr Shelly Oberoi for listening to a long-pending demand of the traders to reduce their tax burden. He explained that the traders had for long been asking that the use factor for rented commercial properties be reduced. It was earlier at 2 – which meant that property tax that they had to pay was two times their base price – and it has now been reduced to 1.25, he said. He added that this will provide great relief to owners of commercial places across the markets in Delhi.
Commending the work of Shri Arvind Kejriwal-led AAP in the MCD since being voted to power by the residents of Delhi, Shri Saurabh Bhardwaj said that relief has also been given to the owners of banquet halls, baraat ghars – especially those baraat ghars that are run by non-profit organisations. He added that these new changes will provide great relief to traders who suffered losses due to the Covid-19 pandemic. “A lot of the traders of Delhi suffered losses due to the Covid pandemic and therefore before the MCD elections, Shri Arvind Kejriwal had promised to them that an AAP-led MCD would work hard to reduce their tax burden. He had also added that whether it was regarding the issue of sealing or of conversion charges or commercial property tax, the MCD would work to assist the people in their issues and to provide them relief in every stage possible,” he said.
