MCG House meeting: Decision on property tax exemption likely on Wednesday

The issue of tax exemption to widows, differently abled people, and those living in buildings smaller than 100 square yards assumes importance not just because of its public appeal, but also because property tax is the MCG’s main source of income.

Property tax exemption for widows, differently abled people, and those living in buildings smaller than 100 square yards will be discussed on Wednesday, at the third House meeting of the Municipal Corporation of Gurugram (MCG).

(From left) Senior deputy mayor Promila Kablana, mayor Madhu Azad and deputy mayor Sunita Yadav preside over a House meeting at John Hall, in Gurgaon. (Parveen Kumar/HT Photo)

The issue, which is among the many others that are on the agenda for discussion, assumes special importance not just because of its public appeal, but also because property tax is the MCG’s main source of income.

If the councillors and officials approve the exemption, the matter will be forwarded to the state government for its consideration and final approval.

City residents are eagerly awaiting the House decision on the subject, with most hoping that the House would vote in favour of the exemption.

“My father died 20 years ago and my mother, who was in the government services, has been paying the property tax dues of her house by taking a significant lump from her annual pension. The MCG’s potential decision to waiver off some tax can significantly ease her burden,” Bhanu Sharma, a resident of Civil Lines, said.

The decision, however, could have a significant impact on the future of the MCG which needs more funds for development projects now than ever.

Over the past year, the MCG has given ₹500 crore to the Gurugram Metropolitan Development Authority (GMDA), and ₹140 crore to the National Highways Authority of India (NHAI) for the development of three underpasses on the Delhi-Gurgaon Expressway.

The civic body, which collected the most property tax ever last fiscal—₹472.13 crore, had hoped for a higher tax collection in 2017-2018 to replenish its treasury.

If the property tax exemption is approved, it is bound to affect the overall revenue from tax recovery, a dip that the civic body may not be able to afford.

MCG commissioner Yashpal Yadav however dismissed reports of “shortage of funds”.

“The MCG has taken several initiatives to make residents’ lives easier, such as online payment (of tax) and door-to-door collection of property tax. The agenda of allowing exemptions and discounts (in property tax to widows and the differently abled) is an another such initiative that is aimed at improving people’s lives,” mayor Madhu Azad said.

The other matters that are on the agenda and will be up for deliberation, include supplying water, sewage and providing other basic civic facilities to those living in the 900m restricted area near the Indian Air Force’s ammunition depot in Sector 14, and the matter of erecting statues of Guru Dronacharya and the Pandavas at key junctions.

A decision will also be made on the proposal to build a community centre in each of the 35 MCG wards, and on regularisation of 32 illegal colonies.

The third House meeting of the MCG will start 11am onwards at the John Hall in Civil Lines.