Following huge public pressure, the state government on Thursday suspended hike in municipal taxes two days after Indore Municipal Corporation announced the new tax regime amidst growing COVID-19 cases.
“Respecting the sentiments of Indoreans, the state government has suspended hike in all types of taxes and users charges,” water resource minister Tulsiram Silawat told reporters in Indore.
He stated that urban development and housing minister Bhupendra Singh informed him about the decision.
To a query, Silawat stated that local BJP leaders were not in favour of increase in any type of taxes in the current situation.
While the city is reeling under server COVID-19 wave, Indore Municipal Corporation (IMC) on Tuesday had doubled water and garbage tax and rolled out new charges for sewerage. Besides, it made provision for collection of property tax as the collector’s guidelines.
Citing Madhya Pradesh Municipality Rules, the IMC introduced the new tax regime, which comes into force from April 1, 2021.
In a public notice, municipal commissioner Pratibha Pal had stated that total expenditure in solid waste management was Rs 20483.24 lakh, in water supply services was Rs 30246.58 lakh and in sewerage works was Rs 2749.03 lakh in fiscal 2019-20.
“As income form user charges were very low in comparison to expenditure of these services, it has become necessary for increasing/changing the rates. Accordingly, IMC administrator approved a proposal, which was in accordance with MP Municipality (Consumer Charges for Water Supply, Sewerage and Solid Waste Management Services) Rules 2020, published on September 28 last year,” the public notice reads.
Water cess, which was Rs 200 per month, was increased to Rs 400 for residential connection of ½ inch. The charges for commercial and industrial connections was also increased. Besides, citizens will now have to pay double the user charges for door-to-door garbage collection service. The charges vary from locality to locality based on its revenue record zone.
Collection charges for residential users have been fixed between Rs 180 and Rs 300, while for commercial establishments it has been fixed between Rs 200 and Rs 360.
IMC introduced charges for sewerage also. People whose properties are connected with sewerage lines will have to pay user charges. For residential users the charges have been fixed at Rs 240 per month whereas Rs 900 per month for commercial and Rs 1308 for per month for industrial. Fecal septage management charges are also to be collected. Where there is no sewerage lines, IMC will collect fecal septage management charge of Rs 160 from residential users.
Citing Madhya Pradesh Municipality (Determination of Taxable Property Value of Buildings and Lands) Rules, 2020, IMC also linked determination of taxable property value on the basis of percentage of difference received in the prevailing collector guidelines. Four slabs have been made for it. No tax up to Rs 6000, six per cent tax on taxable property value between Rs 6001 and 36000, 8 per cent on taxable property value between Rs 36001 and 60000 and 10 per cent on taxable property value between Rs 60001 and above.