Ghaziabad Municipal Corporation Approves New Property Tax Calculation Method

The Ghaziabad Municipal Corporation board has approved a proposal to modify the method used for property tax calculation by changing how road widths are determined. Under the new system, the corporation will define road widths based on the Master Plan, incorporating various infrastructural components such as footpaths, dividers, green belts, service roads, parking areas (if adjacent to the road), and drainage systems. This shift is expected to create a more standardized approach to tax assessment while increasing revenue collection.

At present, property tax in Ghaziabad is calculated based on the location of a property and the width of the adjoining road. The current system classifies roads into three categories: less than 12 meters, between 12 and 24 meters, and above 24 meters. Annual rental values (ARV) are then assigned based on these categories, which in turn determine the tax amount. The proposed changes aim to eliminate inconsistencies in defining road widths and provide a more structured framework for tax assessments.

Expanded Definition of Road Width and Its Impact on Taxation

Under the revised system, road width will no longer be limited to just the main carriageway but will also include additional infrastructure elements. The total width will now encompass footpaths, central verges, green belts, service lanes, dividers, parking zones, and drains. These changes mean that properties facing broader roads—now defined with these additional elements—will see an increase in their ARV, leading to higher property tax.

Municipal Commissioner Vikramaditya Malik stated that the new framework will ensure tax calculations are based on the Master Plan’s specifications rather than previous classifications, which sometimes led to variations in tax assessments. With this update, properties will be taxed based on clearly defined criteria, reducing discrepancies caused by differing interpretations of road widths.

The Chief Tax Assessment Officer, Sanjeev Sinha, indicated that the inclusion of additional road elements in width calculations is likely to increase tax revenue by an estimated 10-15%. He explained that in the current system, only the road itself is considered, while the new system accounts for the entire infrastructure around it. This expansion is expected to bring in higher tax collections, which will contribute to the municipal corporation’s budget for urban development projects.

In cases where the Master Plan does not specify a road width, the municipal corporation will refer to the map layouts approved by development authorities. Additionally, for multi-story buildings, housing societies, and townships, the tax will be determined based on the sanctioned layout maps of the projects. This change ensures that all properties, regardless of their specific locations, are assessed under a uniform framework.

Reactions from Residents and Local Representatives

The decision has sparked opposition from some residents and former councillors, who believe that the revised tax calculation method will place an additional financial burden on property owners. According to Himanshu Mittal, a former councillor from Kavi Nagar, the move is another attempt by the corporation to increase its revenue by redefining road width classifications. He recalled that a similar proposal had been introduced in 2021-22 but was blocked due to opposition from residents.

Rajendra Tyagi, a five-time ex-councillor from Raj Nagar, argued that the municipal corporation should rely on road width determinations made by development authorities rather than introducing its own classifications. He expressed concerns that if the new tax system leads to significant increases in tax amounts, legal challenges may follow.

Other residents have pointed out that the expansion of road width definitions could disproportionately impact homeowners in areas where service roads or footpaths are already included in development plans. They argue that adding these elements to the tax calculation will lead to an artificial increase in property tax without any corresponding improvement in services.

Municipal Corporation’s Justification and Next Steps

Despite concerns raised by residents and local representatives, municipal officials maintain that the revised approach will create a more transparent and equitable tax system. The corporation argues that the current method of road classification is inconsistent and that the proposed changes will establish a clear and standardized system for all properties.

Officials have also stated that the additional revenue generated through the new tax calculation method will be directed towards infrastructure improvements, including better road maintenance, drainage systems, and civic amenities. The municipal corporation believes that the long-term benefits of a streamlined tax system will outweigh initial concerns about higher tax rates.

The new tax system is set to take effect in the next financial year. However, given the level of opposition from some sections of the public, further discussions may take place before implementation. Legal challenges or protests from residents could also influence the final rollout of the revised tax structure. The municipal corporation is expected to engage with stakeholders in the coming months to address concerns and ensure a smooth transition to the new system.