The decision made by Delhi government in concern with increasing the circle rates has encouraged the Municipal Corporation of Delhi which thus, now plans to revise its property tax rates upward.

According to some experts, the impact of the increase in circle rates would be in the ratio 2:1, i.e. , with the increase of 200% in the circle rates, there will be a hike of 100% in the property taxes.

However, where the circle rate increase is not very steep, the revision in property tax could be lower.

The property taxes in Delhi are based on the unit area. The circle rates are fixed at a higher rate because of the cost of property in the posh areas which is quite high.