Won’t allow SDMC to levy new taxes: Gopal Rai

New Delhi: Delhi labour minister Gopal Rai on Sunday said the Aam Aadmi Party (AAP) will not allow the BJP-ruled South Delhi Municipal Corporation (SDMC) to levy

New Delhi: Delhi labour minister Gopal Rai on Sunday said the Aam Aadmi Party (AAP) will not allow the BJP-ruled South Delhi Municipal Corporation (SDMC) to levy “anti-people” new taxes and accused the civic body of “indulging in corruption”. The Delhi BJP, however, said that it has urged the civic body to “rollback” the proposal and not levy the proposed taxes.

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Speaking at a press conference, Rai said at a time when the common man is going through a financial crisis and facing loss of job and business because of the Covid-19 pandemic, the BJP-ruled corporation wants to add to their misery.

Delhi BJP chief Adesh Gupta tweeted on Sunday that he has urged the SDMC mayor and other civic body officials to rollback the proposal of new taxes.

“I have spoken to the South Corporation mayor and urged civic officials to rollback the proposal of introducing new taxes. The mayor has agreed. I request Delhi chief minister Arvind Kejriwal to release funds due to the civic bodies under the 4th Delhi Finance Commission so that they can overcome their financial crisis,” Gupta tweeted in Hindi.

South corporation mayor Anamika Mithilesh said that they have agreed to not levy the proposed professional tax, electricity tax, unauthorised colonies house tax and property transfer tax for the “time-being”.

“We will postpone levying of the professional and electricity taxes for the time being, till the situation improves. About other taxes, we will present a detailed report in the House on Monday,” the mayor said.

The new tax proposals have already been cleared by the SDMC standing committee and would to be tabled in the House on Monday for approval.

Rai said, “People are struggling to come to terms with the economic slowdown. Levying new taxes will add to their financial liabilities. The corporation does not provide any facilities in the unauthorised colonies, but is eager to levy new tax on the residents. Similarly the property transfer tax, professional and electricity taxes will be an additional burden on middle-income groups. We will not let this happen. Our councillors in opposition will sit on protest but will not let these be approved in the SDMC House,” said Rai.

The professional tax is proposed to be levied on self-employed professionals such as doctors, lawyers, chartered accountants and architects, among others. However, those earning less than ₹ 20,000 a month will be kept out of its ambit.

The Corporation had planned to hike the electrify tax from existing 5% on thr billing amount to 6%. The tax is collected by distribution companies on behalf of the corporation. The SDMC generates electricity through solar power panels in many buildings, which it further sells to power companies.

The South civic body has proposed that if those living in unauthorised colonies pay up the house tax for the financial years 2019-20 and 2020-21, their previous years house tax will be waived off. The civic body has been collecting house tax from unauthorised colonies falling in G-category since 2004, but officials said that people have not paid the dues.

The property transfer tax is an additional fee that will go to the corporation on the sale and purchase of a property.

Rai said that the corporations have been getting funds to the tune of Rs 4667 crore, which is much more than what they used to get during the previous Sheila Dikshit-led Congress government’s tenure of around Rs 3343 crore.

Besides, the Delhi government has given them a loan of Rs 3,815 crore. “Where has all this money gone? The corporation must put in public the expenditure done by them so far and why do they need to introduce such taxes. It is only because the BJP leaders want to indulge in corruption,” said Rai.

To this the South civic body mayor said, “What else can we do without funds, if not find new means to generate revenue. We have been trying to generate our own revenue so that we don’t have to depend on Delhi government to release our dues.”