Ranchi Municipal Corporation (RMC) proposes to increase property tax by 100 to 400 per cent, based on location of houses, doing away with the system of having uniform rates across the city.

Town commissioner Prashant Kumar said the corporation was raising holding tax rates after 23 years, going on to explain that had they increased rates every five years, the ultimate burden on residents would have been near about the same.

"We are increasing the holding tax after 23 years. There is a misunderstanding about how the tax is being increased and that it might be a burden on the people. But, we want to clarify that had the taxes been increased every five years, then also the amount would have been more or less the same and in some cases more," he said at a press conference on Wednesday after urban development and housing minister C.P. Singh directed him to do so.

Explaining the new tax calculations, Kumar said, "After the urban development department directed us to revise holding tax, we requested the SDO of Ranchi to assess the annual rental value of various types of houses based on their proximity to principal main roads and other city roads. The rates have been provided by him on the basis of which holding tax rates have been proposed."

Earlier, he said, holding tax incorporated house tax, water tax, sanitation tax, health cess and education cess, all of which worked out to 43.75 per cent. "Now we are taking only house tax at the rate of 2.5 per cent. Earlier, this was 12.5 per cent (see box),"

Kumar said that as soon as the new tax slab was okayed by the RMC board, residents would have to assess their taxes on their own. "Henceforth, we will not decide who will give how much tax. People will be helped by an agency for tax calculation on the basis of their home's carpet area. They will then pay the tax online," he said.

Each house in Ranchi would now be provided with a new holding number. Anyone paying the total annual tax before June, 2016 would get a 5 per cent rebate.

"However, those who do not provide accurate details and pay less, RMC will take punitive action by imposing a penalty of 100 per cent on the total amount," Kumar said.

Earlier, minister Singh took exception with the RMC for delays in implementing various projects in Ranchi.

During a three-hour review meeting, he sought a progress report of the Rs 1.48 crore Joggers' Park project, the foundation of which was laid by him on February 2, 2015. "It is my dream project which ought to have been completed within six months. Next month, it will be one year of the project without any progress," he said.

The project has been stuck as RMC failed to seek necessary clearances from the forest department after it realised that several trees needed to be felled to construct the park.

Mayor Asha Lakra, deputy mayor Sanjeev Vijayvargiya and town commissioner Prashant Kumar were also present at the review meeting.

The minister also sought a progress report of the Bada Talab (Ranchi Lake) beautification project for which Kumar said he had suggested some changes in the DPR to make it more cost-effective.

"We have proposed aeration technology instead of desilting or bleaching of water which will be very costly for water purification. We have also proposed decoration of the boundary wall on the lines of LPN Shahdeo Chowk and also suggested installation of censor-controlled LED lights in the inner circle of the boundary wall so that the lights fall on the water and the inner pathway as well," Kumar said.

Singh liked the plan and asked him to continue with it.