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Tuesday, September 21, 2021

Ahead of civic polls next year, South MCD to propose property tax waiver in unauthorised colonies

The BJP, which has been ruling the three corporations for three terms, faces a tough challenge from AAP ahead of the polls. Unauthorised colonies were AAP’s stronghold in the Assembly polls.

Written by Abhinav Rajput | New Delhi |
July 23, 2021 12:55:40 pm
Electrical sweeping machines to improve sanitation in South DelhiSouth Delhi Municipal Corporation (SDMC)

The BJP-ruled South Delhi Municipal Corporation is planning to waive all pending property tax for residential areas in unauthorised colonies if tax for the current year is paid. For commercial properties, if the last three years’ taxes are paid, the remaining tax would be foregone.

The move, targeting a large section of people living in unauthorised colonies, comes ahead of the MCD elections scheduled for early 2022. There are 400 unauthorised colonies in South Delhi, with over 7 lakh residents.

Standing committee chairperson of South MCD B K Oberoi said the proposal would be moved in the next meeting. “Only 10% pay property tax in unauthorised colonies. We want to bring more people under the tax net. This one-time relaxation is planned so that they clear their old dues and be updated in paying the taxes,” he said.

The BJP, which has been ruling the three corporations for three terms, faces a tough challenge from AAP ahead of the polls. Unauthorised colonies were AAP’s stronghold in the Assembly polls.

The rate of property tax varies depending on the category and use of property. For instance, a four-floor house with two-bedrooms, kitchen, hall, and bathroom, built in 1,000 square feet, would pay around Rs 2,000-Rs 3,000 in property tax a year.

Those living in unauthorised colonies across Delhi avoid paying property tax as they say that the corporation hardly provides services such as parks, community, or recreational centres, which they provide in regularised colonies.

Officials said sanitation, schools, and health services are provided in unauthorised colonies. However, money is needed from these colonies to provide more services.

In the previous financial year, the South MCD collected around Rs 850 crore in property taxes.

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