GHAZIABAD: A significant increase in Ghaziabad’s property tax, implemented on April 1, has triggered widespread protests and strong opposition from residents’ welfare associations (RWAs), industry bodies, and various citizen groups. The revised rates, in some instances, represent a jump of up to four times previous levies, a move that many residents contend violates existing municipal regulations that permit property tax revisions only once every two years.
The last adjustment to house tax by the Ghaziabad Municipal Corporation (GMC) board occurred in January 2023, where a 10% hike was applied to 4.28 lakh properties, remaining effective until April 1 of the current year. Previously, properties on roads narrower than 12 meters paid between Rs 0.3 to Rs 1.6 per square foot, those on 12-24 meter roads paid Rs 0.5 to Rs 2 per square foot, and properties on wider roads were taxed at Rs 0.65 to Rs 2.4 per square foot.
With the new tax structure, homeowners could face an annual increase of up to Rs 5,000, as rates now span from Rs 0.7 to Rs 4 per square foot. Sriram Nair, President of Shalimar Garden Extension-2, B-Block, confirmed that a memorandum detailing the alleged illegality of the hike has been submitted to the municipal commissioner, urging a rollback. Nair warned of potential “mass protest” if the GMC does not correct its course, estimating an average annual increase of Rs 4,000 to Rs 5,000 in house tax for the current fiscal year.
Former councillor Rajendra Mittal has even threatened legal action, labeling the sharp increase an “additional financial burden on residents”. Mittal highlighted the discrepancy between the current “three to four times” increase and the GMC Board’s previous mandate of a 10% hike every two years. He asserted that he possesses documentation supporting the claim that the new tax slab contravenes municipal laws and indicated that legal recourse would be pursued if the rates are not rescinded.
The industry association, Mahanagar Udyog Vypar Mandal, recently organized a protest at GMC’s Nayvyug Market headquarters to oppose the “steep” hike. Brijmohan Singhal, a representative of the organization, reiterated that municipal rules permit property tax increases only once every two years. He pointed out that after a 10% increase in FY 2023-24, the current hike represents an increase of “about three to four times higher”.
In response to the mounting public pressure, Mayor Sunita Dayal stated that consultations are ongoing with councillors and GMC officials. A GMC official clarified that the corporation calculates tax based on the “annual rental value (ARV) of a property”. The official further defended the new rates, stating that the board had passed a proposal in March to link house tax with the DM circle rate, thereby refuting claims of the hike being unconstitutional.
The GMC anticipates that the revised rates will significantly boost its revenue collection by Rs 60 crore. This projected increase is set against a backdrop of substantial growth in the city’s property base, which has expanded from 4.5 lakh to 6.3 lakh properties over the past two fiscal years. The civic body’s move underscores its aim to enhance financial resources, though it faces considerable pushback from a unified front of Ghaziabad residents and business associations.
