Hefty hike in property tax on flats and bungalows

Those living in bungalows and flats in posh areas should expect a steep rise in their property tax bill this municipal election year. After almost six years, municipal commissioner Vijay Nehra in his Rs 8,907 cr budget proposed a 93% to 64% increase in property tax for owners of bungalows with a carpet area more than 100 sq m depending on the neighbourhood, and a 48% increase for owners of flats with a carpet area greater than 750 sq ft. Even pol residents in the Walled City will pay Rs 307 extra. Nehra’s budget proposal has to be ratified by the Ahmedabad Municipal Corporation (AMC) standing committee and general body before it comes into effect. Elaborating on the increase in tax, Nehra said the base rate was raised for residential clusters from Rs 16 to Rs 22 and values of factors for properties in posh location and leased properties were also increased from 1.62 to 1.92. If you are the owner of an independent bungalow, the ownership factor in the tax formula has been increased from 1.5 to 1.8. In case of commercial properties, the base rate has been increased from 28 to 34. In all, an additional tax burden of Rs 244 crore will be levied on Amdavadis, of which Rs 218 cr will be additional property tax on 16 lakh properties and Rs 26 cr will be derived increased vehicle tax.