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This is an archive article published on April 13, 2025
Delhi: Sharp dip in property tax collection, says MCD, blames media reports on waivers
The AAP, in a statement, said, “Property tax is payable by all occupants and owners, with no exemptions permitted
On February 24, AAP leader Sanjay Singh had told mediapersons that residents who pay their taxes for the outgoing financial year will have previous tax dues waived off (PTI File)
The Municipal Corporation of Delhi (MCD) on Saturday said that it has faced a sharp decline in property tax collection at the close of the financial year while attributed it to “confusion” caused by media reports regarding tax exemptions.
On February 24, AAP leader Sanjay Singh had told mediapersons that residents who pay their taxes for the outgoing financial year will have previous tax dues waived off.
The party had announced that homeowners with properties between 100 and 500 square yards will get a 50% tax waiver, while those with houses under 100 square yards will be fully exempt from paying taxes.
However, a few days later, the MCD, in an official statement, had said that it has not approved any such tax waiver.
In a statement on Saturday, the MCD said that the announcements have led to a drop in tax collection.
It cited data, which revealed that property tax collection for FY 2024–25 stands at Rs 2,132.89 crore – a slight drop from the Rs 2,163.57 crore collected the previous year. However, what stood out was that after media reports of tax waivers surfaced, collections fell sharply to Rs 193.28 crore – nearly half of the Rs 367.16 crore collected during the corresponding period last year, the statement added. “This shows that the drop in tax occurred due to misgivings generated due to the said announcement,” the MCD said.
According to MCD, as of February 24, collections had reached Rs 1,932.51 crore, an increase of Rs 158.7 crore or 8.95% over the same period in the previous year.
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“This upward trend indicates that in absence of news of exemption/amnesty, the momentum would have continued further,” it added.
The AAP, in a statement, said, “Property tax is payable by all occupants and owners, with no exemptions permitted. The MCD had urged all property owners and occupiers to file their property tax returns on a self-assessment basis by March 31, 2025, to avoid penalties. Those who have not paid yet, are advised to pay at the earliest. This was duly notified in an official statement dated 28.02.2025; hence, no confusion prevails…”
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