North Delhi civic body postpones proposal on new professional tax

New Delhi:

New Delhi:

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The standing committee of the North Delhi Municipal Corporation on Wednesday postponed all four proposals to increase different taxes, including introduction of a new professional fee, due to resistance from the opposition and also to facilitate a discussion on the move.

The proposals were tabled for approval with an aim to improve the civic body’s financial situation, which took a hit due to the Covid-induced lockdown. These included a new professional tax of different slabs, 1% hike in the duty on the transfer of immovable properties, 1% increase in electricity tax and a property tax hike.

The Aam Aadmi Party (AAP) leaders and councillors staged a protest at the Civic Centre, the headquarters of the corporation, to oppose these proposals.

The north corporation decided to propose these taxes on the lines of the South Delhi Municipal Corporation (SDMC), which had cleared a professional fee and increased tax on the transfer of property.

North body officials said the professional tax was to be imposed on self-employed people and on professionals working in companies.

According to the proposal, those earning up to Rs 50,000 per month, or Rs 6 lakh per annum, will not have to pay the professional tax.

Those earning between Rs 50,000 and Rs 75,000 per month will pay Rs 100 per month. For people earning between Rs 75,000 and Rs 1 Lakh, the charge will be Rs 150 per month, while it is Rs 200 per month for earnings above Rs 1 lakh.

The north civic body had also moved a proposal to hike tax on the transfer of immovable properties. The present transfer duty is 3% for male buyers and 2% for female buyers. The corporation proposes to hike it by 1%.

Another proposal envisaged an increase in electricity tax from 5% on the bill amount to 6%. The electricity tax is added in the power bill and collected by discoms on behalf of the corporation.

A fourth proposal was moved to change the categories of properties in its jurisdiction. This would have led to an increase in property tax.

A senior official said the civic body is going through a financial crisis ever since the lockdown. “Increasing our source of revenue and taxes is the only possible way to fill the financial deficit. But the proposals were postponed and we will table them again in the next meeting,” the official said.

The officials estimated that the civic body had incurred losses between Rs 150 crore and Rs 200 crore.

The north corporation had last month approved recommendations of the municipal valuation committee-3 (MVC-3) to increase tax on rented commercial properties, guest houses and banquet halls.

Jai Prakash, mayor north corporation, said, “We are undergoing a financial crisis. We are making efforts to manage it. We have postponed the tax hike proposals as we cannot approve any hike without proper discussion. We don’t want the public to suffer.”

Senior AAP leader Durgesh Pathak led a protest along with party councillors, opposing the tax hike proposals. “The proposals to hike taxes and to introduce professional tax are anti-people and we will not let this pass. We will keep opposing such proposals that put an extra burden on people’s pockets,” Pathak said.