Schools seek property tax relief

Private schools have asked the MCD to give them benefit on property tax because they are a public utility, reports Neelam Pandey.

Private schools have asked the Municipal Corporation of Delhi (MCD) to give them benefit on property tax because they are a public utility. Currently, private schools that charge Rs 1,200 as tuition fees pay come under the factor III category and pay Rs 7 lakh per year as property tax on an average.

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Schools argue that they have to hike tuition fees because of an increase in the price index and that they should be charged property tax under factor II, that comes to Rs 4.5 lakh per year.

The issue was raised by a delegation of National Progressive School Conference led by its chairman SL Jain who met MCD standing committee chairman Vijender Gupta on Thursday. They requested him to review the current tax slabs.

"The private schools have requested us to look into the categorisation of tax. Currently, schools that charge tuition fee between Rs 600 and 1,200 come under public utility. However, school authorities have argued tuition fees have increased over the years and what was considered exorbitant has now become average. They requested that schools charging Rs 1200 should not be put under factor III," said Gupta. He said the MCD would send its recommendation to the municipal valuation committee.

Parking problem

The delegation also wanted the MCD to defer its order, asking schools to park vehicles inside their premises. They said if the orders are implemented, schools will have to do away with sports activities and grounds would be converted into parking lots.