Shimla Municipal Body approves a 4 percent property tax hike

During the monthly meeting at Bachat Bhawan of the Shimla Municipal Corporation held last week, the approval of a four percent hike in property tax was granted despite opposition from the councillors. Additionally, the implementation of an annual tax rate increase in the city was also set in motion. In the capital city of Shimla, the proposal to enhance the tax amount based on a new formula received from the Central government was tabled at the Municipal Corporation meeting. This proposal faced strong resistance from the councillors, leading to a prolonged uproar. Subsequently, the administration emphasized that failure to implement the tax increase would deepen the crisis concerning the grant amount of Rs 40 crore.

Presently, the Shimla Municipal Corporation receives this grant from the Central Government, and there is a possibility of it being reduced. This would have an adverse impact on the city's development, necessitating the implementation of a similar tax system not only in Shimla and Himachal Pradesh but encompassing the entire country. Under the purview of this new framework, taxes will be raised once a year based on the 5-year average of the state's GDP. The specific rate of increase will be determined annually using this formula. This time, the average was lower due to the years of the Corona period, resulting in a four percent increase. Worries arise over the mounting financial burden on property owners amid rising water and garbage charges. Residents advocate exploring alternative revenue sources to alleviate taxpayer strain.

Opposition from the BJP and the CPI (M) corporators was also vocal, causing a commotion on the matter. They argued that this would burden the city's residents. However, despite the administration's explanations regarding the necessity of this tax increase for the city's development, the protests persisted. Eventually, the Municipal Corporation passed the proposal to implement the new tax. Harish Janartha, the esteemed MLA of Shimla, stated that under the previous formula, there was a proposal to increase the tax by ten percent in the Municipal Corporation. With the introduction of the new formula, the tax increase has been limited to only four percent. The tax rate in the city will now escalate each year, directly affecting the city's residents. He also unveiled a ground breaking development: for the very first time, the city will bear witness to the issuance of dual tax bills within a single calendar year.

Surender Chauhan, the Mayor of the Shimla Municipal Corporation, elucidated that a significant change is on the horizon. On this inaugural occasion, the Municipal Corporation will issue dual tax bills to building owners in the city. Previously, those who had dutifully fulfilled their tax obligations would subsequently receive a separate bill encompassing the remaining balance. With over 30,000 diligent building owners contributing to the city's revenue, amounting to an impressive Rs 21 crore, this new measure is expected to generate an additional income of approximately Rs 1 crore.

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Shimla Municipal Body approves a 4 percent property tax hike

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