The Congress-led Shimla Municipal Corporation (SMC) on Saturday approved a four per cent increase in house tax amid protest by the BJP councillors.

The proposal was supported by Congress members in a meeting of the SMC House and they said hiking the house tax was mandatory to get central government grants for various works.

Mayor Surender Chauhan said according to guidelines of the Himachal Pradesh government, 10 per cent increase in tax is required but in view of better collection of tax, a four per cent increase has been recommended.

The tax will come into effect after the state government approves the recommendation of the SMC House through a notification.

The House also discussed levying a green tax, and a committee of councillors has been constituted on the matter.