Nagpur: In a move set to impact thousands of property owners, Nagpur municipal commissioner Abhijeet Chaudhari gave his nod to a proposal revising property tax rates, paving the way for a 10% increase in general tax across categories. The proposal will now be tabled before the standing committee for scrutiny and approval, after which it will be placed before the general body for final clearance.If approved, the revision will increase the general tax component by 10% and double several auxiliary levies from 1% to 2%, including fire tax, tree cess, education cess, streetlight tax, and water tax.
As per the proposal, properties with an annual letting value (ALV) of Rs1 to Rs2,000 will see tax rise from 14% to 15%. For ALV between Rs2,001 and Rs5,000, rates will increase from 18% to 20%. The Rs5,001-20,000 slab will go up from 22% to 24%, while the Rs20,001-50,000 category will witness a sharper jump from 26% to 30%. Properties with ALV above Rs50,000 will face an increase from 30% to 34.4%.Officials said the base block rate, used to calculate monthly rental value, was last fixed on March 4, 2015, under Resolution no. 72. At the time, the general body authorised the commissioner to increase the block rate by up to 30%. The dept initially proposed exercising the full 30% hike, which could generate an estimated Rs140 crore annually for the cash-strapped civic body. However, the administration opted for a moderated 10% hike instead. Sources indicated that concerns over public backlash and affordability led to scaling down the proposed increase. The standing committee’s decision will be crucial, as the revised tax structure is expected to significantly bolster the NMC revenue amid mounting expenditure pressures.
