NEW DELHI: The vice-chairperson of the New Delhi Municipal Council (NDMC), Kuljeet Singh Chahal, on Monday said the council has implemented the Unit Area Method (UAM), advancing the vision of “One Delhi, One Tax” under the Jan Vishwas framework. The Bill has already been approved by Parliament.
Addressing a meeting with the New Delhi Traders Association (NDTA), Chahal said NDMC’s tax collection stood at Rs 1,045 crore last year and is expected to rise to approximately Rs 1,350 crore this year. He expressed confidence that the implementation of UAM would further strengthen trust among traders. He also assured that a dedicated NDMC team would ensure time-bound resolution of their issues.
Chahal noted that before the full implementation of UAM, a detailed consultation would be held with trader representatives to incorporate their suggestions and make the system more transparent and effective.
Highlighting the benefits of UAM, he said the new system could lead to a reduction of 30% to 50% in property tax, especially for old and self-occupied properties. He explained that the age factor would provide relief for older properties, while bifurcation would allow separate assessment of different portions of a property, such as shops and storage spaces.
He added that the system enables self-assessment and online payment, making the process simpler and more transparent while reducing disputes. “The tax will no longer be based on expected rental income, which may vary among residents or establishments within the same colony, but on a uniform unit area basis applicable equally to all,” he said.
Chahal further said that with the implementation of UAM, the existing upper tax rate would be reduced from 30% to 20%, providing a direct benefit of 10% in property tax payments to residents in the NDMC area. He emphasised that the system would ensure uniform taxation for similar properties and eliminate disparities, while efforts are also being made to minimise penalties and punitive provisions.
During the meeting, NDTA representatives raised issues related to mezzanine floor usage, toilet timings, and the condition of footpaths. Chahal assured that these concerns would be addressed promptly and reiterated that NDMC welcomes constructive suggestions.