Shimla MC budget proposes hike in liquor cess, green tax : The Tribune India

Shimla MC budget proposes hike in liquor cess, green tax

No increase in property tax, decision left to new House

Shimla MC budget proposes hike in liquor cess, green tax


Tribune News Service

Shimla, March 18

The Shimla Municipal Corporation (SMC) proposed several measures, including increasing the cess on liquor bottles from Rs 2 to Rs 10, imposing a green tax on vehicles registered in other states on entering the state, 2 per cent registration fee on fixed assets, etc., in the Budget for 2023-24 announced here today.

The Municipal Corporation has been without elected representatives since June 2022 after the elections were deferred. The MC Administrator (Deputy Commissioner, Shimla) approved the Budget.

As per the Budget, the SMC pegged its income at Rs 181.20 crore while its expenditure was estimated to be Rs 181.14 crore for 2023-24.

Among other measures taken to increase income, the SMC proposed a one-time MC road user charges at the rate of one per cent on vehicles at the time of registration. “Besides, we have proposed the imposition of a service charge on Central Government buildings, which are outside the ambit of property tax,” said Municipal Commissioner Ashish Kohli. The SMC would also charge Rs 500 as monthly charge from street vendors under the Vending Act. “The SMC will earn Rs 60 lakh annually from this provision,” said Kohli. The SMC would also get income from upcoming parking lots and yellow line parking spaces.

The SMC, however, did not increase property tax, its main source of income, in the Budget. A 10 per cent hike in property tax was due this year, but the SMC left it to the new House to take a decision on the issue. The SMC hopes to earn around Rs 10 crore from the imposition of green tax on vehicles.

Proposals to increase revenue

  • The SMC proposed increase in the cess on liquor bottles from Rs 2 to Rs 10
  • A green tax on vehicles registered in other states on entering the state
  • 2% registration fee will be charged on fixed assets
  • One-time MC road user charges at the rate of 1% on vehicles at the time of registration
  • A service charge on Central Government buildings, which are outside the ambit of property tax
  • Rs 500 as monthly charge from street vendors under the Vending Act

Advance estimates for 2023-24

Income Rs 181.20cr

Expenditure Rs 181.14cr

Tribune Shorts


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