From next year, five-star hotels, multiplexes, petrol pumps, guest houses, gymnasiums and clubs among others will have to pay a higher property tax as the Municipal Corporation of Delhi (MCD) is planning to implement the recommendations of the Municipal Valuation Committee (MVC).
According to MVC recommendations, all the above mentioned commercial properties have been put under category A - which stands for upscale colonies such as GK-I and II, Vasant Kunj -- which pay the highest property tax, irrespective of location.
"Till now, these properties have been paying property tax as per the category of the area. If a five-star hotel was in D category area, then it paid less property tax as compared to a five-star hotel in the A category. Once MVC recommendations are implemented, the property tax paid by luxury hotels and other commercial establishments will be the same,'' said a senior MCD official.
According to MCD officials, there are nearly 100-odd high-end hotels which are currently under category D,E,F,G and H.
"The MVC recommendations are mainly for upgrading the category of commercial establishments and will not affect people directly. There are several properties, such as hotels, in lower category areas which have been earning a good revenue, but paying a very low property tax. This will help MCD boost its revenue,'' said Yogender Chandolia, chairman, MCD standing committee.
The MVC recommendations will be tabled at MCD's standing committee meeting on Wednesday. According to sources, the ruling BJP is all set to implement the MVC recommendations. But with MCD elections scheduled for next year, it is likely to refer the matter to a sub-committee to study the recommendation again before they are implemented.