Wednesday, April 22, 2009
Indian middle class affected by Urban reforms?
The opposition to the impact of reforms seems to be spreading like an epidemic from Surat to Guwahati and from Bangalore to Hyderbad, Mysore and Mumbai to Delhi. One of the crucial concerns of the middle class land owner is how to pay the increasing property taxes. The Unit area method introduced as an urban reform by the MoUD, GoI under JNNURM is causing the biggest difficulty for the urban middle classes since the rates of tax are now indexed with the land rates which have appreciated hugely compared to when they bought the plot / land. So in turn, now even with some depreciation the plot-owner ends up paying a huge property tax plus vacant land tax.