Delhi Retailers Demand Fair Property Tax Rates from NDMC
Delhi high street retailers push NDMC to rework property tax
The Economic Times
Image: The Economic Times
Retailers in New Delhi's Khan Market and Connaught Place are urging the New Delhi Municipal Corporation (NDMC) to revise property tax calculations, which currently reach up to 25% of rent. They advocate for a uniform tax rate across the city, aligning with the lower rates in other areas, to support local businesses facing financial strain.
- 01The current property tax rate in NDMC areas is up to 25% of collected rent, significantly higher than the 2-3% in other parts of Delhi.
- 02Retailers are pushing for a unified tax system, dubbed 'one city one tax', to eliminate disparities between elite markets and other areas.
- 03Vikram Badhwar, General Secretary of the New Delhi Traders Association, emphasized the need for prompt implementation of the new tax method to alleviate the financial burden on traders.
- 04Khan Market's rental growth was recorded at only 3% in 2025, with rents at $223 per square foot per year.
- 05Khan Market retains its position as India's most expensive high street, ranking 24th globally.
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Retailers from New Delhi's prestigious Khan Market and Connaught Place are calling on the New Delhi Municipal Corporation (NDMC) to expedite the implementation of a new property tax calculation method. Currently, property tax in these elite markets can reach up to 25% of rent collected, a stark contrast to the 2-3% rate in other areas of Delhi. The traders argue for a rational and equitable base rate that aligns with the Municipal Corporation of Delhi (MCD) to ensure fairness across different market areas. Vikram Badhwar, General Secretary of the New Delhi Traders Association, stated, 'All we are asking for is one city one tax, which will simplify everything.' He criticized the NDMC for delaying the implementation of the new tax structure, which is adversely affecting businesses in affluent neighborhoods. Despite the challenges, Khan Market saw a modest rental growth of 3% in 2025, maintaining its status as India's costliest high street, ranked 24th globally with rents at $223 per square foot annually. The retailers' push for tax reform highlights the ongoing struggle for equitable treatment in property taxation across New Delhi.
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The proposed changes in property tax rates could significantly relieve financial pressure on retailers in high-end markets like Khan Market and Connaught Place, encouraging business sustainability.
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