MCD to give rebates to increase tax collection | delhi | Hindustan Times
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MCD to give rebates to increase tax collection

To increase property tax collections in the Capital, the Municipal Corporation of Delhi (MCD) will soon be giving huge rebates to people with arrears. In a plan tabled before the property tax committee, the civic body has proposed to give a rebate of 70% on the interest levied on arrears, so that the property owner pays only 30% of the interest.

delhi Updated: Nov 12, 2011 00:44 IST
HT Correspondent

To increase property tax collections in the Capital, the Municipal Corporation of Delhi (MCD) will soon be giving huge rebates to people with arrears. In a plan tabled before the property tax committee, the civic body has proposed to give a rebate of 70% on the interest levied on arrears, so that the property owner pays only 30% of the interest.

The civic body has already collected property tax to the tune of R1,000 crore, thereby, meeting the half-yearly target. Collected from April to November, it makes up to two-third of the target collection of Rs 1,800 crore for 2011-12. The collections also include transfer duty.

Compared to the same time last year, the number of property tax payers has increased from 8.1 lakh to 8.5 lakh. Among the 12 zones, the central zone, which includes areas like South Extension and Lajpat Nagar, has paid the highest tax of Rs 52 crore. Shahdara (north) and Narela zones have paid the lowest amount at Rs 2.5 crore and Rs 5.3 crore, respectively.

“Since property tax is the biggest source of income for the MCD, we are coming up with schemes to augment the collections. Soon, we may announce the rebate of 70%. It will be a huge incentive for people to pay up,” said Ved Prakash Gupta, chairman of property tax committee.