Property tax may increase near metro lines
If you own a property near metro line, then you may have to shell out more tax. The growing prices of properties along metro lines are now being targeted by the central government to earn more revenue.
The government has initiated a study to encourage Transit Oriented Development (TOD) in Delhi. Now, the Union Urban Development Ministry is also planning to make this component compulsory for new Metro projects elsewhere in the country.
The TOD proposal for Metro projects is expected from 34 cities. It is believed that high tax imposed on properties along metro line will keep the metro projects financially viable. The government is in favour of preparation of detailed project reports (DPR) for Metro networks in 19 cities.
The Transit Oriented Development (TOD) is one of the fastest growing new trends which aims to create compact, walkable communities centered around high quality train systems. It also proposes to raise the tax on residents of areas close to the lines.
According to a senior ministry official, efforts are being put up to make TOD as a mandatory component before sanctioning new Metro projects. The share of government will be directly proportional to the prices of properties near metro lines.
The Urban Development Minister has been supporting the implementation of transit oriented development in cities which will act as a model of revenue generation.
The officials of Chennai metro rail project had inquired about the progress of TOD. The metro officials think that a collaborative approach between then and municipal corporation is required for imposition and collection of property tax. This is because the civic body is responsible to do so and thus they have to be included in all plans right from the conceptual stage.
The Rajasthan government has already imposed increased property tax and circle rates in areas close to metro lines. The state government is funding for Jaipur Metro project.
This move will not only keep the metro projects financially viable but will also support the centre to repay to repay the loans taken from international agencies.
Click here for related forum discussion
Related Civic Issues News:
Property Tax to be imposed in Punjab
Property tax new rates applicable from April 1, 2013
GHMC imposes 250% property tax fine in Hyderabad
Detailed project reports, DPR, Metro projects in India, new Metro projects, Property tax near metro project, Rajasthan government, TOD, Transit Oriented Development, Union urban development ministry, urban development minister
