Rajkot: The standing committee of Rajkot Municipal Corporation (RMC) rejected the proposal of administration to double the water tax in the city, while allowing partial hike in vehicle tax on Friday. The water tax proposal was rejected despite the civic body estimating Rs 118 crore as water distribution cost for 2018-19.
The ruling BJP revised the budget for 2018-19 proposed by RMC commissioner from Rs 1,727 crore to Rs 1,769 crore. This will come as a relief for the citizens, who are likely to face water shortage this summer.
It was proposed in standing committee that civic body will create alternate source of income and try to get more grant from state government instead of imposing more tax on citizens for basic service.
RMC commissioner Banchha Nidhi Pani had proposed increase of 150% per cent in vehicle tax from 1% of vehicle cost to 2.5%. The proposal was partially accepted by standing committee and it was decided to impose 1% tax for the vehicle priced under Rs 1 lakh. For vehicle costing more than Rs 1 lakh, the tax will be 2%.
Explaining the rationale behind hike in vehicle tax, Pani said there was a need to increase the tax of vehicles to curb traffic and pollution problems. But standing committee stated that for the middle class, students and women, RMC can't tax more than 1% for small vehicles.
Standing committee chairman Pushkar Patel said, "We have suggested some changes considering the development of the city."
On the rejecting the proposed water tax hike, Patel said, "Water is essential and not raising tax will affect the income of RMC. Water being sensitive subject we decided not to raise tax. We plan to recover the shortfall by increasing charges of some of the commercial services provided by RMC."
Each household in Rajkot pays Rs 840 per year per connection as water tax. The commercial units pay Rs 1,680 per connection per year. The administration has proposed to double the tax, which could have added revenue of Rs 44 crore.
The committee also proposed some new schemes and projects which include a new auditorium at the cost of Rs 10 crore proposed in south zone, party plots in three zones, two new high schools for poor children, reading room for students preparing for competitive exam with the facility of reference book, urinals for women and other services.
Besides, the standing committee also proposed six community halls at the cost of Rs 6 crore, two new women activity centres in east and central zones for Rs 3 crore and developing of 48 main roads.
RMC standing committee announcing its decision on the proposed budget
