Ghaziabad May Cut House Tax for Small Shops by 70%

Ghaziabad | August 10, 2026: Small shop owners in Ghaziabad could soon get significant relief in house tax, with the municipal corporation considering a proposal to reduce the tax on shops measuring up to 120 sq ft from around ₹5,875 to ₹1,762 per year.

The proposed change could bring relief to thousands of small traders running everyday businesses such as tea stalls, dairy shops, bakeries, paan shops, salons, tailoring units, photocopy shops and fruit and vegetable stores.

House Tax Could Fall From ₹5,875 to ₹1,762

Under the proposal being considered by Ghaziabad Municipal Corporation, the house tax rate for shops up to 120 sq ft could be reduced from five times the residential rate to 1.5 times the residential rate.

For a 120 sq ft shop, this would bring the annual tax down from approximately ₹5,875 to ₹1,762.

However, the proposal is still under consideration, so shop owners should wait for the final decision and applicable notification before treating the revised amount as confirmed.

Why Small Traders Could Benefit

The proposed relief is particularly relevant for small businesses whose shops are often limited in size but still attract commercial property tax rates.

A lower annual tax burden could reduce operating costs for local traders, especially those running low-margin businesses.

The civic body has indicated that categories such as tea, milk, bread, egg, paan, laundry, fruit and vegetable, photocopy, barber and tailoring shops could benefit from the proposed change.

 

One-Time Settlement Scheme for Old Tax Dues

Along with the proposed reduction, Ghaziabad Municipal Corporation is also offering traders an opportunity to clear outstanding house tax through a One-Time Settlement scheme.

Under the scheme, eligible traders can pay their outstanding dues and receive relief from interest, subject to the applicable conditions.

The scheme is scheduled to remain available from August 15 to December 15, 2026. Traders opting for instalment-based payment will have to register by November 15.

MSME Traders May Get Another Tax Relief

The civic body is also considering whether house tax for traders registered under the Micro, Small and Medium Enterprises (MSME) category can be calculated at residential rates.

If approved, this could provide another layer of relief to eligible small businesses operating in Ghaziabad.

The proposal is currently being examined and objections or suggestions are being invited.

 

Traders Question the Proposed Tax Structure

While the municipal corporation has presented the proposal as relief for small traders, some trader organisations have raised objections.

The Ghaziabad Industry Trade Board has argued that the proposed 1.5-times residential rate itself may not be justified under the applicable municipal rules.

This means the final tax structure could depend on the outcome of the ongoing discussions and objections.

What Ghaziabad Shop Owners Should Watch

For small shop owners, three developments are particularly important:

• The proposed reduction for shops up to 120 sq ft
• Interest relief under the One-Time Settlement scheme
• Possible residential-rate taxation for MSME-registered traders

The final notification will determine which traders qualify, how the revised tax will be calculated and what documentation will be required.

For now, the proposed reduction from ₹5,875 to ₹1,762 could become a meaningful saving for small businesses if the municipal corporation formally approves the revised rates.