RAWALPINDI, June 6: Rawalpindi Cantonment Board's (RCB) annual budget for fiscal year 2011-12 with total outlay of Rs2.5 billion proposes increase in property tax and water charges, Dawn has learnt.

The budget will be presented before a meeting, chaired by RCB President Commander Brigadier Zaman Nasrullah Khan Niazi, on Wednesday. After approval from the board, the budget will be sent to the Military Lands and Cantonments Director for final consent.

Sources said the budget has proposed 10 per cent increase in property tax for domestic and 35 per cent for commercial units. The budget also proposes 50 per cent increase in water tariff.

The property tax on commercial buildings was last increased by the RCB ten years ago. Recently the board has started a survey of commercial buildings to assess their market value. The property tax on domestic units was last increased by 7.5 per cent three years ago.

According to the budget, the total receipts during 2011-12 are expected to be Rs2 billion, with opening balance of Rs500 million.

Sources said Rs1 billion has been allocated for non-development expenditures and Rs900 million have been allocated for the development projects in cantonment areas. They said Rs550 million have been allocated for constructing infrastructure, including repair and maintenance.

The civic body expects to generate Rs300 million through collection of taxes, Rs150 million from water charges, Rs65 million from hoarding charges, Rs150 million from Base Transceiver Station (BTS) towers fee in its jurisdiction, Rs15 million from auction of annual contracts for petrol and CNG stations, Rs75 million from development charges, Rs400 million from shop rents, and Rs2 million from market tax and miscellaneous.

The board had collected Rs551.49 million in taxes and fees from all sources in 2008-09, Rs755.95 million in 2009-10 and Rs1028.58 million in 2010-11.

Sources said the RCB would also execute development works from the funds of parliamentarians on their recommendations, adding that it would be separate from the development schemes prepared from RCB's own resources. They said the development schemes from RCB's own recourses would be prepared for areas neglected in the past.