Nashik: As there is a need to earn additional revenue for implementation of projects in the city under smart city mission, administration has started to take steps for revising property tax rates. A proposal regarding this has been given to the standing committee and ruling BJP is preparing to send it to the General Body Meeting after approval by the standing committee.
After fixing property tax rates on April 1, 2000, these rates have been applicable in the city since last 17 years. Earlier, the administration had many times tried to hike the property tax during standing committee and General Body Meetings, but office bearers had thwarted this attempt. As a result, property tax rates of NMC are lesser than other Municipal Corporations. Despite this, rulers have opposed the tax hike.
After BJP came to power, Local Body Tax was scrapped on July 1 and GST has been enforced. As a result, NMC has to depend on GST grant. Nashik city has been selected under smart city mission and the administration has prepared plans worth Rs. 2,000 crore. NMC has to spend its own money on this plan above Rs. 1,000 crore.
With this, there is no option for the rulers than to hike property and water tax. On the backdrop of this, standing committee had recently decided to hike other property taxes, excluding residential property tax. Considering that expected revenue will not be earned despite this, the administration has started to take steps for revising the property tax taking into account capital expenditure and some projects under the smart city mission.
Mayor Ranjana Bhansi had earlier stated that there is no option than tax hike to develop Nashik as smart city and to do development works in the city. There has been no change in general tax rate since 1991.
The situation is similar about general cleanliness tax, water benefit tax, street tax and NMC education tax. Making it clear that it would be possible to do capital works in future and smart city project if there is tax hike, the administration sent the proposal about property tax hike to the standing committee. This proposal will soon be on its agenda and later it will be sent to the General Body Meeting. The stand taken by the opposition over this proposal will become clear within the next few days.