NASHIK: The administration of the Nashik Municipal Corporation on Sunday presented a budget for the 2025-26 fiscal year with an outlay of Rs 3,053.31 crore.
The property tax for new residential and commercial properties has been increased by 2%. For new industrial properties, the tax has been hiked from the previous Rs 13.2 per sqmt to Rs 19.8 per sqmt, with effect from April 1, 2025. The general body of the NMC has already increased development charges for the developers and builders constructing new buildings/properties by three times — from Rs 105 per sqmt to Rs 350 per sqmt, effective from April 1.
While presenting the budget, NMC commissioner Khatri also announced that all existing and new shops, commercial establishments and industries in the jurisdiction of the municipal corporation will have to mandatorily take permission from NMC and pay the licence fees with effect from April 1, 2025. This will bring in additional Rs 10 crore revenue to the civic body.
Moreover, the NMC administration has decided to introduce a new assessment system for property tax on rental properties (both residential and commercial) that will give relief to the residents, as property tax rates for rental properties will be reduced to some extent. At present, NMC levies double tax rates on residential rental properties and four times more on commercial rental properties. However, as per the new system, property taxpayers will have to pay 30% additional tax on rental residential and commercial properties.
For example, in the existing tax structure, if the property tax for a residential property is Rs 1,000, then the owner pays Rs 2,000 as tax if the property is on rent. However, as per the new assessment system effective from April 1, the same residential property owner will have to pay Rs 1,300 as tax. Similarly, if the tax for a commercial property is Rs 1,000, then the owner must pay tax of Rs 4,000 if the property is on rent as per the present tax structures. But as per the new assessment system, the same property owner will have to pay a tax of Rs 1,300 on rented commercial property. However, property owners will have to inform the NMC about their tenants to avail of this benefit.The civic budget was presented by Dattatray Pathrut, NMC’s chief accounts and finance officer, to municipal commissioner Manisha Khatri during a special meeting of the standing committee. Khatri then approved the budget. Khatri said the civic administration’s total receipts for 2025-26 will be Rs 3,054.7 crore, with an initial balance amount of Rs 66.3 crore.
However, there are no major projects introduced in the budget. The budget outlay has been increased by Rs 450.86 crore to Rs 3,053.31 crore for the next fiscal 2025-26, against an outlay of Rs 2,602.45 crore in the 2024-25 financial year. For the current financial year 2024-25, the civic administration revised the revenue receipt target from the previous Rs 2,603.49 crore to Rs 2,618.81 crore.
Speaking to reporters, Khatri said a nominal hike of 2% was made for the residential and commercial properties for the next financial year, which will help NMC generate an additional Rs 10 crore annually. For residential and commercial properties with a size of 500 sq ft, residents will have to pay an additional Rs 120 and Rs 700, respectively, every year.
“We have also decided to increase the property tax for the new residential, commercial and industrial properties coming up after April 1, 2025. We have not increased property tax since April 2018. Hence, there was a need to make a marginal hike. However, we have also given relief to the taxpayers in property tax levied on rented residential and commercial properties,” added Khatri.
The financial liability, which was around Rs 550 crore last year, has now reduced to Rs 410 crore, she said. NMC administration made a financial provision of Rs 80 crore for the transport service of the civic body to meet the losses annually.
NMC projected an income of Rs 3,054.70 crore during the next financial year, including Rs 1,583.42 crore through GST grant from the state, Rs 256 crore from property tax, Rs 75.22 crore from water tax, and Rs 253 crore through various taxes of the town planning department of the civic body. Of this, Rs 3,053.31 crore is to be spent next financial year, with a balance of Rs 1.39 crore.
The Rs 3,053.31 crore outlay includes revenue expenditure of Rs 1,898.68 crore and capital expenditure of Rs 1,031.25 crore. The civic chief also proposed development funds for wards worth Rs 53.62 crore in the budget. The civic body decided to open nine Balasaheb Thackeray Aapla Dawakhana (clinic/polyclinic) in a bid to provide medical facilities to common people.
