Super-specialty hospitals should pay double property tax, says committee

Sep 11 2012, 10:09 IST
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SummaryThe final report submitted by the Municipal Valuation Committee has recommended doubling of property tax charged from super-specialty hospitals.

The final report submitted by the Municipal Valuation Committee has recommended doubling of property tax charged from super-specialty hospitals.

The committee and the civic agency’s deliberative wing suggested that such hospitals be put in category A, irrespective of the colonies they are located in.

It was also suggested that DIAL pay triple the tax it currently pays, if South Delhi Corporation approves the recommendation. At present, DIAL pays Rs 270 per sqm as it falls in category E. If it is shifted to category A, it will have to pay Rs 630 per sqm.

Private education institutes will also have to pay double tax for open spaces like playgrounds and stadiums.

According to committee report, multi-specialty or specialty hospitals run by a trust or society, allotted land on subsidised rates by DDA or any government agency and charging market rates for providing specialised medical services, be assigned use factor of 4. This means the tax will be doubled as at present factor 2 is used for such hospitals.

The hospitals that fall under the bracket include Ganga Ram, Tirath Ram, Holy Family, Sunder Lal, among others.

The committee also recommended that corporate, super-specialty hospitals — such as Max, Fortis, Escorts, Apollo, Indian Spinal Injuries Institute and Hearts and Lungs Institute, Rajiv Gandhi Cancer Research Hospital and Dharamshila Hospital — have to pay double tax.

M S A Khan, Assessor and Collector (North Corporation), said the increase in property tax depends on two factors — will to change the tax rate, which is done by deliberative wing, and payers ability to pay.

“Annual value of tax is calculated as multiplication of area, a unit area valuation, occupancy factor, use factor, area factor and structure factor,” Khan said.

Also recommended was a minimal increase in tax for big commercial spaces like malls, multiplexes and farmhouses. For these, tax has been hiked 1.5 per cent.

The report has been finalised and is expected to be put before the House this month.

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