By IANS,
New Delhi : After increasing the registration fee for properties and road tax for luxury cars, the Delhi cabinet is set to give its nod to a proposal to hike circle rates for sale and purchase of properties in the capital June 7.
The state government has decided to revise the circle rates, introduced in 2007, in a bid to earn additional revenue, an official source told IANS.
The circle rate is the minimum rate for valuation of land for residential use that differs for various categories of colonies.
There are eight categories for colonies in the capital — A, B, C, D, E, F, G and H.
The minimum rate for valuation of land for residential use is Rs.43,000 per sq metre for category A, while it is Rs.34,100 per sq m for category B. For Category C, it is Rs.27,300 per sq m; Category D – Rs.21,800 per sq m; Category E – Rs.18,400 per sq m; Category F – Rs.16,100 per sq m; Category G – Rs.13,700 per sq m and Category H – Rs.6,900 per sq m.
“We have decided to revise the circle rates fixed in 2007. It may be put up before the state cabinet next Monday,” Delhi Revenue Minister Raj Kumar Chouhan told IANS.
A senior Delhi government official said the hike in the circle rates will be nearly 25 percent, but added that it may differ with categories of colonies.
For instance, in areas like Vasant Vihar, Greater Kailash, Hauz Khas, New Friends Colonies and Defence Colony, the circle rates may even double.
“I cannot discuss on the increase in circle rates before the cabinet meeting, but can say that the exiting rates require revision as they are less than the market price of properties,” Chouhan said.
However, an official source said the rates have already been decided by the state revenue ministry.
The Delhi government is facing a financial crunch in the wake of large spending on improvement and beautification of infrastructure in the capital for the Commonwealth Games Oct 3-14.
The government, in a bid to collect around Rs.100 crore, had hiked registration fee for properties in the capital. It had also decided to raise the road tax rates for vehicles to generate additional revenue.