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Delhi to introduce development land tax |
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The North central Indian municipal territory of Delhi will introduce a development land tax - perhaps already with a few months, reports Delhi Newsline.
 After having sanctioned a professional tax, the Delhi Government has now asked the Municipal Commission of Delhi to not only increase all its fees and fines, but also to impose a new tax “on increased urban land value'.
The new tax - mimicking several previous failed attempts in Britain - will be levied not only on plots immediately after they are developed; in areas where local government facilities and infratrsucture already exist, the civic body will levy the tax when a structure is ’reconstructed'.
Criticising the tax, opposition member Vijender Gupta alleged that the policy would ’’adversely affect the real estate market in Delhi.'
“The tax is illegal, unconstitutional and anti-people. On one hand the Central government is making efforts to promote the real estate market and on the other the Delhi Government is imposing taxes which will impede the growth of real estate,'claimed Gupta.
The move is based on recommendations made by the Second Finance Commission to increase civic body revenues. This means that the new tax will not replace any current taxes.
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