GMC proposes new property tax formula

Published on by 7bighagroup


The state’s latest municipal corporation has introduced its new property tax formula and weightage for different properties. The proposal would be placed before the general board of the Gandhinagar Municipal Corporation (GMC) for final consent. Sources in the GMC claim that the general board would debate on whether to base the new tax formula on the Ahmedabad or Vadodara model.

The city is being divided into four zones: A, B, C and D, based on the level of affluence, land rates based on the state’s ready reckoner, and economic activity in descending order.

In commercial areas, ‘A’ category includes sectors 1,2,7,8,9, 10,11,15,16,17, 18, 19, 20, 21,22,23, 29 and Infocity, and the ready reckoner rate is Rs 20,001 per square metre and above. The ‘D’ category, which consists of sectors 14, 25, 26, Indroda, Dhaula Kuan, Palaj, and western Gandhinagar including GIDC areas, commercial land rate is Rs 15,000 and below. The ‘B’ and ‘C’ category includes sectors 13, 24, 27, 3, 3(new), 4,5,6,12,28, 30 and Adiwada areas, and book rates are between Rs 15,000 and Rs 18,000 per square metre.

In residential areas, places where government’s ready reckoner rate is Rs 11,001 per square metre and above, have been classified as affluent ‘A’ category. These areas include sectors 7, 8, 16 to 23. In the poor category are areas where the government ready reckoner rate is less than Rs 7,000 per square metre. These areas include sector 26, Indroda, Basan, Palaj, Dhaula Kuan and Borij.

Category ‘B’ and ‘C’ include sectors 13, 14, 24, 25, 27, 1,2,3, 3(new), 4,5,6, 9 to 12,15, 28, 29, 30 and Adiwada areas up to the railway line.

In commercial areas, in terms of weightage on location, ‘A’ zone properties are being assigned a weightage of 1.6, followed by 1.2 for ‘B’ zone, 1.1 for ‘C’ zone and 1 for ‘D’ zone areas. For residential areas, the same weightage is assigned by the GMC for A, B, C and D category areas.

“A crucial aspect which needs to be seen is how effectively the GMC plans a slumfree, encroachment-free city with the new tax formula in place. I feel the present tax rates are affordable and are congruent with present land rates,” said Pankaj Kotak, business head for K Rahej Corp.

“We received 19 objections and none of them were considered while making changes in the proposed property tax formula. All government properties would have a weightage of 3.5, schools and allied institutions will have a weightage of 2, industrial units will have a weightage of 3.5, while charitable institutions, temples and religious institutions will have a weightage of 0.05. The new rates and weightage would be put before the general board meeting on August 17,” said a senior GMC official.

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