In a populist measure, the political wing of the Rajkot Municipal Corporation has slashed the newly-proposed taxes from Rs 26.6 crore to Rs 6.5 crore for the current fiscal year.

The taxes were proposed by the standing committee during the annual budget.

Sources said the total size of the budget has been increased by over Rs 5.8 crore.

Earlier, the Administrative Wing led by Commissioner Dinesh Brahmbhatt had proposed a budget with Rs 599 crore of investment this fiscal. The political wing on Monday introduced 11 additional projects, increasing the budget size to Rs 604 crore. To reduce the tax burden by over Rs 20 crore, house tax target has been increased, and measures to cut down on several other administrative expenditures has been forwarded.

Standing Committee Chairman Kamlesh Mirani said: “The proposed double-hike in water, sign board, and domestic animal licence fee have been turned down. The proposed drainage and conservancy taxes have been accepted.”

Thus, the proposed hike of Rs 50 per month in tax slab for domestic water connection has been completely rejected. The slab remains unchanged at Rs 840 for domestic use and Rs 1,680 per annum for commercial connections. An amount of Rs 1 crore tax target as signboard charge has also been rejected.

The standing committee has, however, accepted the changes proposed in drainage tax and conservancy tax. Drainage tax, which is three per cent of the property tax or Rs 150, whichever is more, has been increased to 4 per cent or Rs 200, whichever is more.

The political wing has also accepted the hike in conservancy tax, which is presently 6 per cent of the property tax for domestic units, 11 per cent for commercial units and 13 per cent for industrial units. Sources said that from the next fiscal year it will be 7 per cent, 12.5 per cent and 15 per cent, respectively.

New projects approved by the standing committee include water supply system for junction plot, relocation of slaughter houses, hi-tech auditorium and gymnasium for the east and west zone, shepherd colony, city lake at Shahri Maidan, food zone at Aji Dam, rainwater drainage, and a health centre.