The Municipal Corporation of Delhi (MCD) is set to levy house tax on Kendriya Vidyalayas. The agency has decided to levy tax on the Kendriya Vidyalayas vacant areas such as parks,play areas and internal roads in the schools.
The officials in talks with the Kendriya Vidyalayas believe that as majority of the schools fall under the MCD area,it is important for them to pay tax.
There are 40 Kendriya Vidyalayas in the Capital. Of these,38 are in the MCD area. According to officials,schools that receive financial aid of up to 95 per cent receive subsidy for property tax. We have already given subsidy to the institutes for the tax they pay for having schools as property, said the official.
Assessor and Collector,MCD, M S A Khan said the Kendriya Vidyalaya Sangathan has taken the responsibility of paying tax for all its schools collectively,rather than letting each do it for itself. Every school has vacant areas playgrounds,parks and assembly areas for which KVs do not pay tax. We are asking them to pay for these areas also, Khan said.
The MCD earns approximately Rs 70 crore in tax from educational institutions. On whether the agency has the right to collect property tax from government schools,Khan said,There are institutes like IIT and JNU. JNU believed that areas with rocks are tax free. Similarly,IIT Delhi has huge lawns and roads on the campus. We will charge them for these areas as well. Some of the institutes have already started paying for these areas.