Property tax in MCD areas set to get higher

Residents living in MCD areas may soon have to shell out more money in the form of new taxes. Neelam Pandey reports.

Residents living in MCD areas may soon have to shell out more money in the form of new taxes.

HT Image

The civic agency has proposed levying education cess, which will be part of the property tax that is annually paid by all property owners.

The cash-strapped Municipal Corporation of Delhi (MCD) is planning to impose education cess on property tax to augment its revenue.

"We need to find ways to increase our revenue, and education cess is part of that exercise. The case for levying education cess will be examined further and report on the same will be submitted to the municipal commissioner for a final view," said a senior MCD official.

As per the proposal, the education cess will depend on the property tax paid by households in the MCD area.

"Once the proposal is cleared in principal, we will determine the exact percentage which will have to be paid by residents. For instance, if one pays Rs 10,000 as property tax, say a 2% on the amount will be charged as education cess," added the official.

Currently, the area under the jurisdiction of MCD has been divided into eight categories - A to H. Category A stands for upscale colonies that pay the highest amount of tax, including New Friends Colony, Vasant Kunj, Anand Niketan and others.

The civic agency earns Rs 700-800 every year as property tax.

It also spends more than Rs 1,400 crore on providing educational facilities to students.

The schools run by the civic agency are plagued by several problems such as irregular water supply, absence of seats and others.