The draft budget of the Ahmedabad Municipal Corporation proposes a massive 43.75% increase in property tax on residential properties and a 32.14% increase on non-residential properties. According to a back of the envelope calculation, the property tax on a 100 square yard 2BHK house will skyrocket from around Rs 1,000 to Rs 1,400 per year. The draft budget also proposes raising the property tax rate by 5% every year starting now. It should be noted that the last property tax increase was in 2013.
Property tax:
The property tax on residential properties will rise from Rs 16 to Rs 23 per square metre (a 43.75 percent increase) and from Rs 28 to Rs 37 (a 32.14 percent increase). According to sources, a similar increase in the property tax will be proposed in the budgets of the state’s other municipal corporations as well.
New environment tax:
In another major tax proposal, the civic body has proposed to introduce “environment improvement charge” on residential and commercial properties on the basis of “polluter pay principle”. A tax ranging from Rs 5 (0-15 square metre area) to Rs 3,000 is levied on residential properties (more than 500 square metre area). Commercial properties will cost between Rs 150 (0-15 square metre area) and Rs 7,000. (more than 500 square metre area).
Solid waste tax:
Under “solid waste management user charges,” an additional burden of Rs 365 has been proposed on every residential unit, regardless of its area. It has been proposed to double the rate for residential properties from Rs 1 to Rs 2 per day. Rate increases for commercial units will more than double. AMC will levy water charges on consumption of more than 20,000 litres, among other tax proposals.
Presenting the Rs 8,400 crore draft budget on Tuesday Municipal Commissioner M Thennarasan said, “Property tax rates have been hiked after a gap of 10 years. To ensure the sustainability of civic services, it has been proposed that it be increased at a rate of 5% per year. The civic body intends to raise taxes to generate an additional Rs 600 crore per year.” The AMC had invited suggestions from citizens for the first time.Over 500 suggestions were received, many of which were incorporated in the budget, Thennarasan said.
The AMC wants Ahmedabad to be zero-waste and zero-pollution. The budget includes numerous new projects relating to water, drainage, roads, gardens, and e-governance. AMC has proposed a “green, blue, yellow roof scheme” to save energy costs, under which property owners will receive a 10% tax bill rebate.
A 5 hectare area has been proposed for the development of 12 new gardens and a nature park. The AMC plans to build a high-tech nursery and train over 1,000 people to manage its gardens efficiently.
A 24-hour water supply scheme has been proposed for the city’s Sola, Chandlodia, Nikol, Vastral, and Thaltej area, though a similar scheme that was launched as a pilot project in Jodhpur failed to materialise.
Major draft budget highlights
- Five iconic roads with smart parking, green belt with walk-way, seating arrangement, cycle track, EV charging station to come up between: Airport Circle to Indira bridge; Airport Circle to Dafnala Circle; Visat Circle to Zundal Circle; Visat Circle to Tapovan Circle; Rajpath Club to SP Ring Road
- Ellis Bridge to be developed as a pedestrian bridge
- Percolating well scheme to be extended by a year wherein 80% cost will be borne by AMC, 20% by citizens
- Nine new bridges/flyovers proposed
- Automated parking slot with smart metering via app
- For the last mile connectivity, 600 e-auto rickshaws to be deployed on 100 BRTS/ Metro routes
- EV charging stations to be set up at 100 AMTS/BRTS stations
- Ten urban forests, 12 gardens to be set up; 11 gardens to be renovated
- Vibrant gaming zone, water sports to be developed on the riverfront
- Working women hostel to be set up in East and West zone; She Lounge to be set up for women in each zone with loo, crèche and sitting arrangement