The Ghaziabad Municipal Corporation (GMC) has rescinded its recent property tax increase following substantial pushback from local Residents’ Welfare Associations (RWAs) and business groups. The revised tax structure, which became effective on April 1st of this year, was officially nullified during a special board meeting called by Mayor Sunita Dayal on Monday. The session involved extensive debate and was attended by prominent figures including Ghaziabad MP Atul Garg and MLAs Sunil Sharma, Sanjeev Sharma, and Ajitpal Tyagi.
Prior to April 1st, property tax rates varied: ₹0.32 per square foot for properties on roads under 12 meters wide, ₹0.48 to ₹2 for roads 12-24 meters wide, and ₹0.65 to ₹2.4 for broader thoroughfares. The now-reversed rates ranged from ₹0.75 to ₹4 per square foot. In March, the board had also proposed aligning property tax with the DM circle rate, with GMC’s tax calculations based on a property’s Annual Rental Value (ARV).
Mayor Dayal confirmed the withdrawal of the hiked property tax and stated that no notices based on the higher slab would be dispatched to residents. To address any inaccuracies in past tax notices, GMC has engaged 100 outsourced personnel for inspection and grievance redressal.
However, Municipal Commissioner Vikramaditya Singh Malik indicated that the GMC board’s decision would be forwarded to the state government. He also noted that since the matter is currently before the Allahabad High Court—due to a case filed by former GMC councillor Rajendra Tyagi—the board’s resolution will not be implemented until a decision from both the state government and the judiciary.
Rajendra Tyagi initiated legal action in the Allahabad High Court in late May, contesting the GMC’s decision to implement the increased property tax. Tyagi asserted that municipal regulations permit property tax hikes only once every two years, making the current increase, which is reportedly three to four times higher, a violation, especially considering a 10% increase in the 2023-24 fiscal year. He additionally sought the court’s intervention regarding GMC’s move to impose a uniform tax slab on all property types. Tyagi highlighted existing municipal rules that offer ARV rebates on residential buildings based on age: 25% for properties aged 10 years, 32.40% for those between 10 and 20 years old, and 40% for buildings over 20 years old. GMC is scheduled to present its response to the court concerning the board’s decision on July 29.
