MCD on taxing spree | delhi | Hindustan Times
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MCD on taxing spree

delhi Updated: Jan 18, 2010 23:53 IST
HT Correspondent
HT Correspondent
Hindustan Times
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If you own a property in the city, get ready to shell out more money every year. After saying no to the proposal of introducing professional tax, the high-powered standing committee of the Municipal Corporation of Delhi (MCD) has cleared the proposal for hiking property tax.

But instead of the 5 per cent proposed by the MCD commissioner, the panel has proposed a minimal hike of three per cent, two per cent and one per cent for categories A and B; C, D and E; and F, G and H respectively.

The entire MCD area has been divided into eight categories — A to H. Category A stands for upscale colonies.

A host of new taxes have also been proposed to help the civic body address the problem of dwindling revenues. The new taxes proposed include a five per cent annual tax on private discoms.

In addition to this, the standing committee members also approved the proposed hike (5 per cent) in tax for self-owned luxury commercial properties.

Luxury commercial properties — starred hotels, malls, air-conditioned gyms, swimming pools and clubs, among others — are charged a 10-per cent tax at present.

The civic agency claims the new taxes have been proposed to generate additional revenue for the corporation and to help “balance the burden imposed upon the corporation by the Sixth Pay Commission.”

Other plans to generate revenue include a proposal to consider the properties of Delhi Jal Board and discoms as commercial properties while calculating property tax.

Also proposed are charging an annual rent for the use of municipal land from owners of companies that carry out ducting or install other equipment on municipal land and sanitation charges, whereby banquet halls and community halls will have to pay Rs 5,000 per month.

“Banquet halls and community halls will also have to pay an annual registration fee ranging between Rs 20,000 and Rs 1 lakh, depending on their respective capacities,” said Ram Kishan Singhal, the standing committee chairman.

“The charges will account for the expenses the MCD has to incur in cleaning up the leftovers after every function.”

Increasing tax is one thing, getting Delhi’s property owners to pay tax is a far more difficult exercise.

MCD’s recent amnesty scheme for property tax defaulters — with a deadline of December 31 — saw a very poor response.

MCD officials say they will carry out a new survey to identify all registered and unauthorised properties in Delhi.