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The Ghaziabad Municipal Corporation is considering a proposal to reduce house tax on small shops measuring up to 120 square feet, cutting the rate from five times the residential rate to 1.5 times, which could bring the annual tax on such shops down from approximately INR 5,875 to INR 1,762. The relief is aimed at small traders running businesses such as tea stalls, dairy shops, bakeries, paan shops, salons and tailoring units. Alongside the proposed reduction, the civic body is offering a One-Time Settlement scheme for outstanding dues, running from 15 August to 15 December 2026, and is also examining whether MSME-registered traders can be taxed at residential rates.
The Ghaziabad Municipal Corporation is considering a proposal to significantly reduce house tax on small shops measuring up to 120 square feet, a move that could bring relief to thousands of small traders operating across the city.
Under the proposal, the house tax rate for such shops would be cut from five times the prevailing residential rate to 1.5 times the residential rate. For a 120 square foot shop, this would lower the annual tax bill from approximately INR 5,875 to around INR 1,762, marking a reduction of roughly 70 per cent.
The proposed relief is aimed at small traders running everyday businesses such as tea stalls, dairy shops, bakeries, paan shops, salons, tailoring units, photocopy shops, and fruit and vegetable stores. The civic body has indicated that categories including tea, milk, bread, egg, paan, laundry, fruit and vegetable, photocopy, barber and tailoring shops could stand to benefit from the revised structure, given that such businesses typically operate out of small premises but have historically attracted commercial property tax rates disproportionate to their size and turnover.
Officials said the proposal remains under consideration at this stage, with the civic body inviting objections and suggestions before finalising the revised structure. Shop owners have been advised to await the final notification before treating the proposed reduction as confirmed.
Alongside the proposed rate cut, the Ghaziabad Municipal Corporation is offering traders an opportunity to clear outstanding house tax dues through a One-Time Settlement scheme. Under the scheme, eligible traders can pay off pending dues and receive relief from accumulated interest, subject to applicable conditions. The scheme is scheduled to remain open from 15 August to 15 December 2026, with traders opting for instalment-based payment required to register by 15 November.
The civic body is separately examining whether house tax for traders registered under the Micro, Small and Medium Enterprises (MSME) category can be calculated at residential rates rather than commercial rates, a measure that, if approved, would provide a further layer of relief to eligible small businesses operating in the city.
The proposal has not gone unchallenged. The Ghaziabad Industry Trade Board has raised objections to the plan, arguing that even the proposed rate of 1.5 times the residential rate may not be justified under applicable municipal rules, suggesting the trader body is seeking a further reduction. The final tax structure is expected to depend on the outcome of ongoing discussions between the civic body and trader representatives.
The report did not specify the total number of small shops in Ghaziabad expected to qualify for the proposed relief, nor did it provide a timeline for when the municipal corporation is expected to formally notify the revised tax structure.
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