Ghaziabad: Ghaziabad Municipal Corporation (GMC) on Saturday approved a 35-40% cut in property tax rates, ending a year-long standoff after UP govt stepped in with revised slabs. The decision, cleared by GMC’s executive committee, reduces the maximum levy from Rs 4 to Rs 3.40 per sq ft and will take effect from April 15.The rollback follows months of protests by residents and political friction within the civic body, with the issue gaining urgency ahead of next year’s assembly elections. The state govt’s intervention, communicated through a formal directive on Friday, broke the deadlock between elected representatives and officials over the extent of the hike introduced earlier this year.Under the revised framework, property owners who have already paid tax at higher rates will be compensated through staggered adjustments. Officials said the excess amount will be offset over three years, with one-third of the surplus credited annually against future tax liabilities, forming the core of the relief package tied to the rollback.The new rate structure varies by road width. Properties along roads wider than 24 metres will now be taxed at Rs 3.4 per sqft, down from Rs 4. For those on 12-24 metre roads, the rate has been reduced to Rs 2.8 per sqft from Rs 3.8 per sqft. In areas with roads narrower than 12 metres, the levy has been cut to Rs 2.3 per sqft from Rs 3.50.Before April 1, 2025, these rates were significantly lower, intensifying resistance when the revised slabs were introduced.
Mayor Sunita Dayal and municipal commissioner Vikramaditya Singh Malik address a press conference on Saturday
The controversy over the tax hike had placed the BJP-led civic body in a difficult position. BJP holds the mayor’s office, two assembly segments covering the municipal area and a majority in the 100-member house. Public opposition, cutting across party lines, saw councillors back residents demanding a rollback, while civic officials argued higher rates were necessary to fund infrastructure and services.Mayor Sunita Dayal had publicly opposed the hike and lobbied the state government, flagging the political and financial strain on residents. Municipal commissioner Vikramaditya Singh Malik, however, had maintained that Ghaziabad’s property tax rates were among the lowest in UP before the revision and required rationalisation to support urban development.Even with the reduced rates, the corporation expects collections to remain stable due to a shift in the assessment method and a basket of rebates. Property tax would now be calculated on carpet area instead of covered area, altering the taxable base. Officials said this change, combined with incentives, would moderate the overall burden.A series of rebates introduced in the 2025-26 financial year would continue to apply. Taxpayers paying on time are eligible for a 20% discount, while an additional 2% concession is offered for online payments. Properties with waste segregation at source qualify for a 10% rebate. Age-based concessions range from 25% for buildings up to 10 years old, 32.5% for those between 10 and 20 years, and 40% for structures older than 20 years.Civic officials said the combined effect of lower rates and rebates would significantly ease the burden compared to the earlier revised slabs, while retaining a broader tax base.
