Delhi-NCR news: New property tax calculation proposal approved in Ghaziabad; check details inside

The Ghaziabad Municipal Corporation Board has approved a new proposal that aims to redefine road widths according to the Master Plan, which will now be used to determine property taxes. This move is expected to boost the corporation’s tax revenue, but it has also sparked opposition among residents.

What's Changing in Property Tax Calculation?
Currently, property tax in Ghaziabad is calculated based on the property's location, road width, and its corresponding annual rental value (ARV). The ARV depends on road widths categorized into three types: roads less than 12 metres wide, roads between 12 to 24 metres, and roads wider than 24 metres.

Under the new proposal, the property tax will be calculated using the road width as defined in the Master Plan, eliminating the differentiation between service roads, main roads, and other location-based distinctions. Municipal Commissioner Vikramaditya Malik explained that this change is intended to eliminate inconsistencies in road width determinations.

How Will the New Method Work?
The ARV, which is a key factor in determining property tax, is based on the per-square-foot carpet area and a factor (up to 4) set by the corporation. This factor increases with the road width, meaning wider roads lead to higher ARV and, consequently, higher property taxes.

The new proposal includes not just the main road but also other infrastructure elements in the road width calculation. These include:

Footpaths
Dividers and central verges
Green belts
Parking spaces adjacent to the road
Service roads
Drains along the road
Previously, only the actual road portion was considered for tax calculations. By including all these additional elements, officials estimate that tax revenues could increase by 10-15%. The changes are expected to take effect from the next financial year.

In cases where the Master Plan does not specify the road width, the corporation will rely on the road dimensions outlined in map layouts. For high-rise buildings, societies, and townships, the road width for tax calculations will be determined by the sanctioned project layouts approved by development agencies.

Residents Push Back Against the Proposal
The new proposal has not been well received by everyone. Residents fear that redefining road widths will lead to higher taxes. Himanshu Mittal, an ex-councillor from Kavi Nagar, criticized the move, stating, “The proposal is just a disguised attempt to increase the tax burden on households and boost the corporation’s revenue.”

Rajendra Tyagi, a five-time ex-councillor from Raj Nagar, also voiced concerns. He argued that the municipal corporation should adhere to road widths determined by development authorities. Tyagi mentioned that they are reviewing the proposal and may consider legal action if necessary.

What’s Next?
As the proposal is set to be implemented in the next financial year, both residents and officials will closely watch how this change impacts property tax calculations and municipal revenues. The ongoing debate highlights the challenge of balancing municipal revenue needs with residents' financial concerns.