The east Delhi municipal corporation’s announcement on Tuesday that there will be no increase in property tax and parking charges this year has come as a huge relief for residents.
However, with no other available means to generate income, the corporation has demanded a Rs. 8,000-crore special package from the Delhi government.
By announcing that taxes will not be increased, the corporation's standing committee turned down recommendations made by the municipal commissioner.
In December, commissioner SS Yadav had proposed to introduce three new kinds of taxes — professional tax, electricity tax and betterment tax, apart from increasing the base rate of property tax.
The municipal commissioner had also proposed to levy education cess on property tax to funds projects in the education sector.
According to senior officials, the east corporation now requires a special package from the government to improve infrastructure.
"A sector-wise calculation was done to see the gaps. We have sent a 60-page document with details of what is required in which area," said commissioner Yadav, adding that the amount was being demanded for a period of five years.
When asked whether no hike in taxes would affect the corporation's kitty, the commissioner said the civic body will try to mobilise its existing resources rather than increase taxes.
"We have sent proposals for funds as well as Union government schemes and are also trying to tap CSR funds. There is no dearth of funds," the commissioner added.
According to him, the National Rural Health Mission has already given Rs. 30 crore and the corporation is expecting Rs.15 crore more by March. Similarly, the civic body has received R3 crore under the AYUSH scheme.
"In education, we are eyeing around Rs. 25 crore fund under the Sarva Shiksha Abhiyaan and Rs. 15 crore under NeGP for IT. A working women's hostel and sports promotion activities are also being looked at for possible funding under Union government schemes," Yadav said.