AAP to protest against south civic body’s new tax on professionals, other hikes

The SDMC House on Monday passed the proposal to levy a professional tax on self-employed persons and professionals working in companies — a first in Delhi — and doubled the tax on rented commercial properties.

The Aam Aadmi Party (AAP) will organise a protest outside the Bharatiya Janata Party (BJP) office on Wednesday against the decision of the South Delhi Municipal Corporation (SDMC) to levy a professional tax on self-employed persons, hike tax on transfer of property, and almost double the taxes on rented commercial properties.

The AAP’s political affairs committee member also criticised the Congress and said its councillors did not oppose the move in the SDMC House when it was passed on Monday. (HT photo)

All three municipal corporations in Delhi are ruled by the BJP.The SDMC House on Monday passed the proposal to levy a professional tax on self-employed persons and professionals working in companies — a first in Delhi — and doubled the tax on rented commercial properties. The civic body also approved a 1% hike in tax on transfer of property, with an aim to ramp up revenue collection which has been hit by the national lockdown to contain spread of the coronavirus disease (Covid-19).

The AAP’s political affairs committee member and in-charge of municipal corporation affairs Durgesh Pathak on Tuesday also criticised the Congress and said its councillors did not oppose the move in the SDMC House when it was passed on Monday.

“The BJP should be ashamed of implementing these taxes at a time when people are struggling because of the Covid-19 pandemic… We shall be protesting against the move outside the BJP office tomorrow (Wednesday)… While the BJP is the party behind the taxes, the Congress worked in connivance with it by remaining silent in the House while the taxes were passed. Also, since 2017, when the BJP came to power in the three municipal corporations, Congress has not organised a single protest against the irregularities in the civic bodies. Is it because they are participants in the same corruption?” Pathak said during a press conference on Tuesday.

Delhi Congress chief Chaudhary Anil Kumar said, “Congress councillors in the House had openly and vehemently opposed the passing of the new taxes, which at a time like this is inhuman and an additional burden on the common man. Both the AAP and the BJP are fooling people the same way. Even the AAP government had hiked the VAT on diesel and petrol, which is not warranted at this time. The Congress is also going to hold a press meet on the issue tomorrow (Wednesday).”

In response to AAP’s allegations, BJP leader and SDMC mayor Anamika Mithilesh said due to the pandemic, the income of the civic body has been hit and its financial condition has worsened, leaving them with no option but to levy taxes.

“In the past, we refrained from imposing any new tax or increasing rates of existing taxes but the Covid-19 has changed the scenario. As per the recommendations of the Fifth Finance Commission, Delhi government has to give us ₹1,300 crore but it is yet to do so. Hence, we had to levy taxes. We have designed tax slabs in such a way that it does not impact the common man,” she said.

For self-employed professionals such as doctors, lawyers, chartered accountants and architects, etc.,earning between ₹50,000-75,000 per month, the professional tax will be ₹100 per month. For those earning between ₹75,000-1 lakh, it will be ₹150 a month, while it will be ₹200 a month for those earning above ₹1 lakh. Those earning less than ₹50,000 a month won’t be taxed.

The SDMC House also doubled the tax on rented commercial property. The tax amount will depend on the location of the property. “Under the SDMC jurisdiction, there are around 9,000 to 10,000 commercial properties. So we hope to generate an additional revenue of ₹90-100 crore per annum. The move will not impact residential and commercial properties that are being run by the owners,” said Narendra Chawla, leader of the House, SDMC.

For instance, the current commercial tax payable by a 83.6-square metre shop in a locality such as Defence Colony or South Extension is ₹25,333 per annum. But if the shop is a rented property, then the owner will now have to pay ₹50,666 as tax.