Tree Credits

Following article was published in Times India on 13^th July and may be of interest to readers of this blog

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Soon, you can earn credits for planting trees

Sandeep Ashar TNN 

Mumbai: The government, within three months, would decide on a proposal of offering “credits” to residents for planting trees, forest minister Bhaskar Jadhav said on Thursday. Modelled on the carbon credit concept, the social forestry department has proposed to offer incentives, called “tree credits”, to individuals, corporates, institutions and industries that grow as well as protect trees on plots owned by them or in their possession.

    An increase in green cover will generate more carbon credits and according to the proposal, the government would offer “tree planters” a share of the carbon credits it earns; these credits are proposed to be offered till the tree attains silvicultural maturity and certificates given to the private partners could subsequently be encashed. The social forestry department submitted the proposal on June 21 and the government was considering its approval, Jadhav stated in reply to a query raised by Shiv Sena’s Ramdas Kadam and Diwakar Roate in the legislative council.

    The proposal is aimed at increasing the state’s forest cover, which currently stands at 20.13% of the total area. According to norms, Maharashtra must have a minimum forest cover of 33% of its area. To achieve the target, the government had decided to plant 100 crore trees annually for the next five years and that, “planting of trees on individual lands by private partners” would also be encouraged, Jadhav said. He also said the trees would be planted, taking into consideration the suitability of the soil condition and the local topography.

What Is Tree Credit? 

Modelled on the carbon credit concept, the social forestry department has proposed to offer incentives, the “tree credits”, to individuals, corporates, institutions, and industries that grow and protect trees on plots owned by them or in their possession. With green cover going up, the government will earn more carbon credits, which it proposes to share with the private partners and offer them certificates; these certificates can subsequently be encashed.

Property Tax- Capital Value Based System

Following article was published in The Times Of India Mumbai Edition on 14^th July 2012 Readers of this blog may find it useful.

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Pay property tax arrears from Apr ’10

Shawan Sen TNN 

Mumbai: Come September and you will receive your “final bill” for property tax calculated under the newly implemented capital valuebased system that was approved last month. This spells bad news for owners of buildings, both residential and office complexes, which have come up after 2010 as they will have to pay property tax arrears from April 2010 in this financial year.
    

For older buildings, which have been receiving provisional bills, the final bill will be adjusted to reflect the outstanding or refund amount calculated according to the new system. 

Pay property tax early, rebate likely

Mumbai: In September, property owners will not just receive a final property tax bill, but also a special notice that will reflect the property’s capital value. The special notice will also entail space for objections and citizens will get 21 days to raise objection on the bill, if any. The notice will mention the area of the building for which property tax is to be charged, the new tax that has been calculated, the old tax rate, method of the new capital value-based tax, among other details of the new system. 

    S S Shinde, joint municipal commissioner, told TOI, “We are targeting end-August to send across the bills. Along with the bills, a special notice will also be sent. Every flat
owner will be sent details such as the user category, nature of the building, floor number, etcetera  things that will determine the capital value of the property.” 

    The BMC is also working on incentives to lure citizens to pay the bills on time. For instance, if the bills are paid before June 30, you can get a rebate of 2% to 4%. “We are working on the incentives. This will also reflect in the special notice that will be sent along with the final bill,” said a senior official of the assessment and collection department. In case of late payment, a penalty would be imposed. 

    According to the department, citizens will have to pay the difference amount between the new method and the old rateable value system. Citizens will get approximately three months to pay the additional property tax based on the capital value for the past three years,sinceApril2010.In case after calculating the difference, a property owner has made excess payment, the BMC will refund the amount on an interest rate of 6.25%. “The bills will reflect the retrospective amount,” said Rajiv Jalota, additional municipal commissioner.

 

    The BMC’s standing committee had approved the new capital-value system, which bases taxes for all buildings (old and new) according to the Ready Reckoner Rate. The BMC had switched to the new capital value-based system that calculates property tax based on the use of property, construction, type and age from the former rateable value system, based on the property’s rent.

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