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‘MCD’s proposed tax hike is unacceptable’

Rather than nailing the defaulters, the MCD is once again planning to burden the taxpayers.

delhi Updated: Dec 08, 2010 23:53 IST
Neelam Pandey
Neelam Pandey
Hindustan Times

Rather than nailing the defaulters, the MCD is once again planning to burden the taxpayers.

Though there are approximately 30 lakh properties in the city, the Municipal Corporation of Delhi (MCD) has been able to collect tax from only nine lakh properties.

Unable to get more people under the tax net the civic agency has been facing a

financial crisis which it is now trying to overcome by increasing taxes.

"In 20110-12 too, the MCD will incur a loss of nearly R117 crore as its income is way low than the expenditure. They are now trying to make it up by burdening the taxpayers. It is not done and we will oppose it. Why aren't they taking action against the defaulters?" asked Jai Kishan Sharma, leader of opposition in MCD.

Delhiites have rejected the proposed increase in property tax by MCD.

“We have been paying taxes for the past 30 years and rather than giving us incentives they are penalising us. Those who don't pay getting away scot-free,” said VK Arora, a resident of Kiran Vihar in east Delhi .

The incentives given by the civic agency for timely payment of taxes has also been reduced from 15% to 10%.

“The taxes are supposed to be used for improving civic facilities but MCD hardly spends it. They should first explain where the money will be spent.

Even this year they had increased taxes by 30% to 10%. Every year we are being burdened further," said Mahesh Kumar, a resident of Saket.

The civic agency's tax collection system has been in a shambles as though it has already identified 4,816 properties which owe it money but they have simply not been paying.

"We have identified such properties and if our property tax department is able to collect tax from them we will earn Rs 712 crore. If that would have been done there wouldn't have been any need to increase property tax this year,” said a senior MCD official.

First Published: Dec 08, 2010 23:51 IST