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Sunday, September 26, 2021

South MCD approves property tax waiver in unauthorised colonies

Standing committee chairperson of South MCD BK Oberoi said people living in residential areas in these colonies can pay this year’s taxes and their old taxes would be foregone.

Written by Abhinav Rajput | New Delhi |
Updated: August 1, 2021 7:12:26 pm
At Sangam Vihar, Delhi’s largest unauthorised colony. (Express photo by Praveen Khanna/File)

The BJP-ruled South Delhi Municipal Corporation has decided to waive pending property tax for those living in unauthorised colonies if they pay tax for the current year. For commercial properties, if the last three years’ taxes are paid, the remaining amount would be waived.

Standing committee chairperson of South MCD BK Oberoi said people living in residential areas in these colonies can pay this year’s taxes and their old taxes would be foregone. “Only 10% pay property tax in unauthorised colonies. We want to bring more people under tax net. This one-time relaxation is planned so that they clear their old dues and be updated in paying their taxes,” he said.

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. The BJP, which has been ruling the three corporations for three terms, faces a tough challenge from the 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, property tax for a four-floor house with two-bedrooms, kitchen, hall, and bathroom, built in 1,000 square feet, would be around Rs 2,000-Rs 3,000 a year.

Residents of 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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