Once again, rather than nailing the defaulters, the MCD is planning to overburden taxpayers. Even though there are approximately 30 lakh properties in the city, the Municipal Corporation of Delhi (MCD) has been able to collect tax from only 10 lakh. These 10 lakh property owners living in several parts of the city will soon see a rise of 25-42% in their tax bills.
Municipal commissioner KS Mehra in his budget proposal for the year 2012-13 and revised budget proposals for 2011-12 has proposed an increase in tax rates in all categories — residential and commercial.
The entire MCD area has been divided into eight categories A to H, where category A stands for upscale colonies (see box). In A and B category MCD has proposed an increase of 3% in A and B categories, 4% in C, D, E categories and 3% in F, G and H categories.
In A and B colonies such as New Friends Colony, Greater Kailash I and Vasant Vihar the property tax will go up by 25%, in C, D and E categories which include areas such as Lajpat Nagar, Sarita Vihar, it will go up by 36% and in F, G and H categories, which has areas such as Shakarpur, it will go up by 42%.
“We want to provide better services to the residents and for this we need more funds. Increasing property tax is one of the major ways of achieving that. We are hoping to gain Rs 150 crore from this exercise. We still have a deficiency of Rs 1,285 crore,” said KS Mehra, MCD commissioner.
Delhiites are unhappy with the proposal. “We have been paying taxes for the past 30 years and rather than giving us incentives they are penalising us. Those who don’t pay get away scot-free,” said Akriti Sethi, a resident of Malviya Nagar.
The civic agency's tax collection system has been in a shambles. Though it has already identified 18 lakh properties which owe it money, they have simply not been paying. “Notices have already been sent to two lakh owners. But they have still not paid. We are hoping to get Rs 250 crore through this exercise,” said a senior MCD official.
Apart from residential areas, commercial areas and farmhouses too will have to shell out more.