MCD house rejects all tax proposals

The MCD House on Monday rejected all tax hike proposals proposed by Municipal Commissioner KS Mehra in his budget proposals for the next financial year 2012-2013.

The MCD House on Monday rejected all tax hike proposals proposed by Municipal Commissioner KS Mehra in his budget proposals for the next financial year 2012-2013.

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Mehra on December 7 had proposed a hike in property tax and mooted two new taxes — congestion tax and sanitation tax.

With MCD elections ahead, the BJP-ruled MCD decided to reject all proposals.

Last week, the Standing Committee of MCD had also made a similar resolution.

"Four years ago when the BJP came to power, it had promised the citizens that it will not burden them with new taxes. For the last four years, it has kept the promise and will continue to do so," read the resolution.

The Standing Committee and the House took the stand after the MCD was criticised for the proposals.

However, the axe will continue to hang on the common man due to MCD trifurcation. In April, when the trifurcation is implemented, separate budgets will have to be made for three separate corporations.

According to senior officials, these proposals may find their way in the new budgets.

The commissioner had suggested the tax hikes to improve the financial condition of the MCD.

He had expected to raise a sum of Rs 100 crore through sanitation charges and Rs 50 crore through the congestion charge.

MCD political leaders argue that the corporation must improve its finances by bringing in more properties under its tax gambit and not by increasing taxes.