No increase on property tax; MC proposes green tax on vehicles registered in other states

Shimla: The Shimla Municipal Corporation presented its Budget for 2023-24. The Municipal Corporation has been without elected representatives since June 2022 after the elections were deferred. The MC Administrator Deputy Commissioner, Shimla approved the Budget.

The Shimla Municipal Corporation has estimated to collect revenue of Rs 181.20 crore while its expenditure was estimated to be Rs 181.14 crore for 2023-24.

To increase its income, the Shimla MC has proposed measures, including imposing the cess on liquor bottles from Rs 2 to Rs 10 and a 2 per cent registration fee on fixed assets in the Budget for 2023-24.

The corporation has decided to reintroduce a green tax on vehicles registered in other states on entering the state. The corporation estimating to earn around Rs 10 crore from the imposition of green tax on vehicles.

The Municipal Corporation has proposed a one-time MC road user charge at the rate of one per cent on vehicles at the time of registration. The Corporation also targets to earn income from upcoming parking lots and yellow line parking spaces.

Municipal Corporation has proposed the imposition of a service charge on Central Government buildings, which are outside the ambit of property tax. Corporation has also proposed to charge Rs 500 as a monthly charge from street vendors under the Vending Act.

Meanwhile, Municipal Corporation hasn’t increased property tax in the budget. A 10 per cent hike in property tax was due this year, but the corporation has left the decision to the new House.