AMC reduces property tax rebate from 75% to 50% for GIDCs
Real Estate

AMC reduces property tax rebate from 75% to 50% for GIDCs

The Ahmedabad Municipal Corporation (AMC) will now reduce the property tax of Vatva, Naroda, Odhav and Kathwada to 50% from 75% to Gujarat Industrial Development Corporation (GIDC).

The standing committee is yet to give final approval to the proposal. Earlier, the civic body proposed the standing committee revising the rebate rate from 75% to 50%.

Earlier, AMC used to retain 25% of the total property taxes paid and returned 75% of the collected taxes to GIDC estates to carry out development and maintenance activities, including roads, water and sewerage.

According to an official, AMC collects nearly Rs 25-30 crore property tax per annum from GIDC estates like Vatva, Naroda, Odhav and the new industrial estate of Kathwada.

The official said that the civic body introduced this proposal to promote industrial activity in GIDC estates. Currently, the civic body is under financial stress due to the loss of revenue during the Covid-19 lockdown and plans to reduce the incentive.

Former president of Vatva Industries Association, Ankit Patel, told the media that property tax is a significant cost component for industries.The reduction in property tax will increase the compliance costs of the individual industries. It will also affect the industry associations. The maintenance of common infrastructure is already a challenge with a 75% rebate. The proposal of reduction will also be a challenge for the associations.

Image Source

Also read: Ahmedabad Municipal Corporation demolishes 3 illegal constructions

The Ahmedabad Municipal Corporation (AMC) will now reduce the property tax of Vatva, Naroda, Odhav and Kathwada to 50% from 75% to Gujarat Industrial Development Corporation (GIDC). The standing committee is yet to give final approval to the proposal. Earlier, the civic body proposed the standing committee revising the rebate rate from 75% to 50%. Earlier, AMC used to retain 25% of the total property taxes paid and returned 75% of the collected taxes to GIDC estates to carry out development and maintenance activities, including roads, water and sewerage. According to an official, AMC collects nearly Rs 25-30 crore property tax per annum from GIDC estates like Vatva, Naroda, Odhav and the new industrial estate of Kathwada. The official said that the civic body introduced this proposal to promote industrial activity in GIDC estates. Currently, the civic body is under financial stress due to the loss of revenue during the Covid-19 lockdown and plans to reduce the incentive. Former president of Vatva Industries Association, Ankit Patel, told the media that property tax is a significant cost component for industries.The reduction in property tax will increase the compliance costs of the individual industries. It will also affect the industry associations. The maintenance of common infrastructure is already a challenge with a 75% rebate. The proposal of reduction will also be a challenge for the associations. Image Source Also read: Ahmedabad Municipal Corporation demolishes 3 illegal constructions

Next Story
Infrastructure Energy

REC Transfers HVDC Project to Power Grid

REC Limited has successfully handed over the Special Purpose Vehicle (SPV) for a High-Voltage Direct Current (HVDC) transmission project to Power Grid Corporation of India Limited (PGCIL). This strategic move aligns with the nation's objectives to strengthen its power transmission network. Key Highlights: Project Overview: The HVDC project, under the inter-state transmission system (ISTS) initiative, is a critical component of India's push toward robust and efficient electricity transmission. It aims to handle bulk power transfer across long distances while ensuring minimal losses. Role of RE..

Next Story
Infrastructure Transport

NF Railway Collaborates with IIT Guwahati

The Northeast Frontier (NF) Railway has signed strategic Memorandums of Understanding (MoUs) with IIT Guwahati to foster technological advancements and improve railway operations in the region. This partnership focuses on innovative solutions to enhance safety, efficiency, and sustainability in rail infrastructure. Key Highlights: Purpose of MoUs: The collaboration aims to leverage IIT Guwahati's expertise in technology and research for implementing cutting-edge solutions across railway operations. Key areas of focus include: Automation and digitization in maintenance. Sustainability initiati..

Next Story
Infrastructure Transport

Danapur Division Modernization Plans Revealed

The Railway Board has unveiled ambitious plans for the expansion and modernization of the Danapur Division, a critical hub under the East Central Railway. The initiative focuses on infrastructure development, enhanced passenger amenities, and operational efficiency. Key Highlights: Scope of Modernization: The Railway Board's blueprint emphasizes: Upgrading existing infrastructure to accommodate more passenger and freight traffic. Improving station facilities, such as platforms, waiting areas, and connectivity. Introducing advanced signal systems for safer and smoother operations. Freig..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000