GHAZIABAD: On Saturday, the Ghaziabad Municipal Corporation (GMC) approved a 35-40% reduction in property tax rates, resolving a year-long impasse after the UP government introduced revised tax slabs. The GMC’s executive committee approved the resolution, which will lower the maximum tax from ₹4 to ₹3.40 per square foot, effective from April 15.
This rollback follows months of protests from residents and political tensions, especially as the upcoming assembly elections loom. The state government’s formal directive provided the necessary intervention to resolve the deadlock between elected officials and the civic body regarding the earlier tax hike.
Under the new structure, property owners who have already paid taxes at the higher rates will receive compensation through gradual adjustments. Officials indicated that excess amounts will be reimbursed over three years, with one-third of the surplus credited annually against future tax dues—a key component of the relief initiative linked to the rollback.
The new tax rates will vary based on road widths: properties adjacent to roads wider than 24 meters will see their rates adjusted to ₹3.40 per square foot, down from ₹4. For 12-24 meter roads, the tax will be reduced from ₹3.80 to ₹2.80 per square foot, and properties located on roads narrower than 12 meters will now incur a tax of ₹2.30 per square foot, previously at ₹3.50.
Prior to April 1, 2025, these rates were substantially lower, which heightened opposition to the revised slabs.
This tax increase placed the BJP-led civic body in a difficult position, despite the party holding the mayor’s office and dominating the municipal assembly. Public dissent was widespread, prompting councillors to support residents in calling for a rollback, while officials defended the necessity of higher rates to finance infrastructure and services.
Mayor Sunita Dayal publicly criticized the hike and pressured the state government, highlighting the political and economic strain on residents. Meanwhile, Municipal Commissioner Vikramaditya Singh Malik argued that Ghaziabad’s property tax rates were among the lowest in UP before the revision, advocating for adjustments to facilitate urban development.
Even with the lowered rates, the corporation anticipates stable tax collections, thanks to a change in the assessment methodology and a range of rebates. Property tax will now be calculated based on carpet area, rather than covered area, altering the taxable base. Officials expect that this adjustment, along with new incentives, will lessen the overall burden.
A series of rebates applicable in the 2025-26 fiscal year will remain in effect. Taxpayers can receive a 20% discount for timely payments, with an additional 2% off for online transactions. Properties practicing waste segregation at the source are eligible for a 10% rebate, while buildings qualify for age-based concessions ranging from 25% for those under 10 years to 40% for structures older than 20 years.
Officials noted that the combination of reduced rates and rebates would significantly alleviate the financial burden compared to the prior increased slabs, while maintaining a broader tax base.
