East Corporation of Delhi has proposed a drastic increase in property tax and parking rates along with a slew of new taxes in order to strengthen its financial position.

In the budget for next financial year, East Corporation proposed a 160 per cent increase in the base unit area rates for computing property tax. If approved, the hike will generate additional Rs 200 crore for the corporation.

Proposing the tax hike, Mr. Yadav said, "The valuation committee report is yet to be implemented. The present property tax rates are not in accordance with the cost index."

Currently, the parking rate for cars is Rs 10 for the first ten hours and Rs 20 afterward. The civic agency has proposed to charge Rs 10 for the first half-an-hour, Rs 20 for first one hour, Rs 50 for up to three hours and Rs 20 per hour after that.

To generate funds for new development projects, the corporation proposed new taxes, such as an education levy and a betterment duty. The proposed education tax will be 5 per cent of the property tax, while the betterment tax will be 10 per cent of the property tax.

The two new taxes will strengthen the civic agency's financial position by nearly Rs 33 crore.

Officials say that the proposed increases in existing taxes and new taxes are critical to continue infrastructure development works in the state.