HP: Shimla Municipal Corporation approves 4 per cent increase in property tax

Shimla (Himachal Pradesh) [India], July 2 : In the monthly meeting held at Bachat Bhawan of the Shimla Municipal Corporation on Saturday, despite opposition from the councillors, the four per cent increase in property tax was approved. Along with this, an increase in the tax rate every year has also been implemented in the city.
In the capital, Shimla, the proposal to increase the amount of tax according to the new formula received from the Central government was brought to the meeting of the Municipal Corporation. The councillors openly opposed this, and there was an uproar over it for a long time. After this, it was told by the administration that if it is not implemented, then the crisis will deepen over the grant amount of Rs 40 crore.
At present, this grant is issued to the Shimla Municipal Corporation by the Central Government; there may be a cut in it. This will also have an adverse effect on the development of the city. That's why a similar tax system has to be implemented not only in Himachal Pradesh and Shimla but in the whole country.
Under this, there will be an increase in tax once a year. Its rate will be fixed based on the 5-year average of the state's GDP. The rate of increase will be decided separately every year under this formula. This time the average was low due to the years of the Corona period. That's why the increase has been made by 4 per cent.
The BJP and the CPI (M) corporator also openly opposed it, and there was a ruckus on this issue. They argued that this would affect the people of the city, but when the administration explained to them that it was necessary for the development of the city, Despite this, their protest continued, and the Municipal Corporation passed the proposal to implement the new tax.
"Under the old formula, there was a proposal to increase the tax by 10 per cent in the Municipal Corporation. After the introduction of the new formula, there has been an increase of only four per cent in the tax. Every year, the tax rate in the city will increase. Its direct burden will fall on the people of the city.
Two tax bills will be generated for the first time in a year, said Harish Janartha, MLA, Shimla.
"The Municipal Corporation of Shimla will issue two tax bills for the first time to the building owners of the city. Earlier, for the building owners who have paid their tax bills, the remaining bill after the increase will be issued to them separately in the next bill. More than 30,000 building owners in the city pay taxes. The Municipal Corporation earns 21 crores from this. After this increase, there will be an additional income of about one crore rupees," said Surender Chauhan, Mayor of Shimla Municipal Corporation.