Ahead of next year’s municipal elections in Delhi, the BJP-ruled South Delhi Municipal Corporation (SDMC) has decided to roll back the enhanced rates of property tax for commercial rental establishments, educational institutions, banquet halls.
New Delhi [Nihal Singh]. Ahead of next year’s municipal elections in Delhi, the BJP-ruled South Delhi Municipal Corporation (SDMC) has decided to roll back the increased rates of property tax for commercial rental establishments, educational institutions, banquet halls. This move of the corporation will benefit the businessmen, which is considered to be the vote bank of the Bharatiya Janata Party (BJP).
- According to officials, the tax on rented
 commercial properties was increased on the recommendations of the Municipal Valuation Committee, which was implemented in April last year.
The Municipal Valuation Committee had recommended almost doubling of property tax on rented commercial complexes, telecom towers, vacant commercial land, vacant industries, marriage halls, educational institutions, entertainment and entertainment facilities. These recommendations were implemented in April 2020 but were approved retrospectively in July 2020.
The decision to roll back the tax hike was taken in the SDMC Standing Committee meeting on Tuesday. According to SDMC officials, the decision to roll back the tax hike will benefit the traders and business community but will dent the coffers of SDMC, which is already facing shortage of funds.
A senior official said on condition of anonymity that the move is expected to cause a loss of Rs 70-80 crore per year to the corporation. There are around 9000 commercial properties under the jurisdiction of SDMC which have been let out, so we were expecting good revenue generation.
- Community center will refund the amount of canceled booking
At the same time, in the lockdown imposed during the second wave of Corona, the community centers of the Southern Corporation which were booked for wedding ceremonies and other programs. The Southern Corporation will now return the amount of their rent. The resolution related to this was passed by the Standing Committee of the Corporation on Tuesday.
The Delhi government had implemented the lockdown on 9 May. Because of this people could not do their functions and events despite booking. During this time, more than 20 people were banned from attending the celebrations. When the cases of corona decreased, then on June 26, permission was given to have a wedding ceremony in Delhi.
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