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The Ghaziabad Municipal Corporation (GMC) has approved a reduction of 35-40% in property tax rates after sustained protests by residents and intervention from the Uttar Pradesh government. The revised structure, cleared in the past week, lowers per square foot tax rates across categories and will come into effect shortly. The decision follows widespread opposition to earlier revisions that had significantly increased tax liabilities for property owners. Authorities have also revised the basis of tax calculation and introduced provisions to adjust excess payments made under previous rates. The move is expected to ease the financial burden on homeowners while maintaining municipal revenue through broader compliance and recalibrated valuation mechanisms.
The Ghaziabad Municipal Corporation (GMC) approved a reduction of up to 40% in property tax rates in the past week, following sustained public protests and intervention by the Uttar Pradesh government, with the revised structure set to be implemented in the coming days. Advertisement
The decision was finalised during a meeting of the corporation's executive committee, bringing an end to a prolonged dispute over revised tax slabs that had triggered opposition from residents, traders and resident welfare associations across the city. The earlier revision had significantly increased tax liabilities, with several property owners reporting multiple-fold increases in their annual dues.
Under the revised framework, property tax rates have been reduced across categories based on road width and location. For properties located on roads wider than 24 metres, the rate has been reduced from INR 4 per sq ft to approximately INR 3.40 per sq ft. Similarly, properties on roads between 12 and 24 metres have seen rates lowered from around INR 3.80 to INR 2.80 per sq ft, while those on narrower roads below 12 metres have been reduced from approximately INR 3.50 to INR 2.30 per sq ft.
In addition to rate reductions, the civic body has revised the methodology for calculating property tax. The new system shifts the basis from covered area to carpet area, which is expected to reduce the taxable base and lower the overall burden on property owners.
Officials indicated that property owners who had already paid tax at the higher rates would be provided relief through an adjustment mechanism. Excess payments will be offset over a three-year period, with one-third of the surplus amount adjusted annually against future tax liabilities.
The revision follows a period of significant public opposition after earlier tax hikes were introduced by linking property valuation to rental values and circle rates. Residents and local bodies had raised concerns that the revised system resulted in a three- to five-fold increase in tax liabilities, leading to protests and legal challenges.
Despite the reduction in rates, officials have indicated that the revised framework is designed to maintain overall revenue stability by improving compliance and expanding the tax base. Authorities expect that lower rates, combined with simplified calculation methods, will encourage a larger number of property owners to regularise payments.
Additional rebates and incentives are expected to continue under the revised system, including concessions for timely payment, online transactions and building age, forming part of a broader effort to improve tax collection efficiency.
The development reflects a recalibration of municipal taxation policy in response to public feedback, while attempting to balance revenue requirements with affordability concerns. The revised structure is expected to provide immediate relief to property owners while enabling the civic body to stabilise its revenue streams through improved participation and compliance.
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