No property tax for residents in rural areas: Delhi Mayor

The Municipal Corporation of Delhi (MCD) will no longer collect property tax from rural residential areas, according to Mayor Shelly Oberoi. Property taxes will still be collected from commercial areas. The decision comes after pressure and protests from the Bhartiya Janata Party (BJP). Property tax collection is a major source of revenue for the MCD, but compliance is low. Only 1.3 million of the 1.5 million registered owners currently pay property tax.

Mayor Shelly Oberoi on Saturday said that the Municipal Corporation of Delhi (MCD) will not collect property tax in any rural residential area from now on and that officials have been directed to not issue notices in this regard to property owners.

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Property taxes will, however, be collected as usual from all designated commercial areas of MCD.

“We held discussions with the heads of Delhi’s rural areas as well as property tax officials and MCD has decided to not collect any property taxes from any rural residential areas in Delhi from now on,” said Oberoi.

She added that while the BJP was in power at the MCD for the last 15 years, people were troubled by property tax notices every year.

Deputy mayor Aaley Mohammad Iqbal said that in all 70 constituencies of Delhi where there are rural areas, be it dora or extended lal dora, property tax will not be collected. He added that heads of 360 villages were present in the meeting held with the mayor and deputy mayor on Friday where the decision was taken.

It was decided that commercial taxes will apply to the 2,138 notified roads by MCD but if someone from a village is engaged in a small-scale employment, no property tax will be applied, said officials.

Meanwhile, Bhartiya Janata Party (BJP) leaders said that the decision was taken following pressure and protests by BJP in MCD.

“BJP councillors in MCD strongly protested against the property tax being levied on villages in the monthly meeting of MCD when the topic came up for discussion. We also met the LG in this matter along with representatives of all 360 villages. Delhi BJP leaders regularly extended support to the dharnas organised and this rattled the Aam Aadmi Party,” said Virendra Sachdeva, Delhi BJP president.

Property tax collection remains one of the biggest sources of revenue for the cash-strapped civic body but compliance remains low. Delhi is estimated to have more than 3.5 million buildings but only 1.5 million are registered with the corporation. Only 1.3 million of the registered owners pay property tax, according to MCD officials.