Ghaziabad Municipal Corporation (GMC) has repealed a controversial property tax hike introduced on April 1, 2025, after facing public backlash and legal scrutiny. The increase had tripled or quadrupled tax rates, sparking opposition from resident and trader groups. Mayor Sunita Dayal convened a special board meeting where the hike was formally canceled. However, the decision awaits approval from the state government and the Allahabad High Court, where a related case is ongoing. The court had earlier received a petition citing rule violations and unfair uniform tax slabs. GMC has paused issuing revised notices and plans property inspections to resolve tax anomalies.
The Ghaziabad Municipal Corporation (GMC) board has recently voted to cancel an earlier announced increase in property tax rates. This decision, made during a special board meeting, affects property owners across Ghaziabad and was taken in response to strong public opposition from resident and trader associations. The board formally repealed the new tax structure.
The new tax structure, which came into effect on April 1, 2025, had increased property tax by three to four times. This was despite municipal rules stating that tax can only be hiked once every two years, a point of contention. Before April 1, rates ranged from INR 0.32 per square foot to INR 2.4 per square foot. The revised rates were between INR 0.75 per square foot and INR 4 per square foot, linking the tax to the District Magistrate (DM) circle rate.
Mayor Sunita Dayal called the special board meeting to address the issue, where the decision was repealed after a heated debate. Ghaziabad MP Atul Garg and MLAs Sunil Sharma, Sanjeev Sharma, and Ajitpal Tyagi were in attendance. Mayor Dayal stated that the hiked property tax stands were repealed and GMC will not send notices based on the increased slab. She also mentioned that 100 outsourced employees would conduct inspections to address anomalies in tax notices.
Former GMC councillor Rajendra Tyagi had filed a case in the Allahabad High Court in late May against the property tax increase. He cited the violation of municipal rules regarding the frequency and extent of tax hikes. Tyagi also challenged the GMC's decision to levy a uniform tax slab on all property types, arguing that municipal rules mandate rebates on Annual Rental Value (ARV) for older residential buildings.
The case is currently sub-judice in the Allahabad High Court. Municipal Commissioner Vikramaditya Singh Malik noted that the board's decision would be sent to the state government. He also stated that since a case regarding the hike is still active in the Allahabad High Court, they would await the state government's and the court's decisions before fully implementing the board's repeal. The next hearing for the case is scheduled for July 29, where GMC is expected to present the board's decision to repeal the hike.
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