New property tax could be more than twice the existing tax
Nagpur- As soon as the Nagpur Municipal Corporation (NMC) proposed cash value-based property tax technique, they committed that the stress will be more than twice the existing tax and thrice the current taxes pertaining to business oriented taxpayers.
However, the tax may rise if anyone includes the 20-30% additional tax for essential services. If the tax payer does not have water connection, then they have to pay additional 40% for that.
The civic body has started the process to carry out the new system and more over they have started receiving criticism and recommendations for the new system. The capital value for each property in the new system will be calculated on the basis of ready reckoner and five other values.
Furthermore, it is found that the rate of taxation comes to around 20-30% depending upon the properties they have which also includes fire service tax 1%, sewage tax 12%, education cess 2-6%, lighting tax 1% and EGS cess 1-3%. They have not yet taken the final decision whether they should impose the additional taxes on capital value of properties or annual letting value.
It came to notice that the civic body is planning to reduce the portion of additional taxes to keep control in property tax.
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