The Hindu 21.01.2011
No extra tax burden in MCD budget estimates
Proposal of 5 % hike in property tax rejected with an eye on the municipal elections next year
Despite the Municipal Commissioner's budget proposal in December last for a 5 per cent across-the-board hike in property tax in the next fiscal, Delhiites have been spared any additional financial burden with the legislative wing of the civic body formally rejecting the proposal with an eye on the municipal elections next year.
The decision was taken at a special meeting of the MCD Standing Committee on Thursday to finalise the budget estimates for the year 2011-12.
The ruling BJP had made it clear on the day of presentation of the budget by MCD Commissioner K. S. Mehra that the hike would not get a nod and the opposition Congress had also spoken strongly against “burdening” the residents further. Both the parties favour bringing more properties under the tax net to increase revenue for the cash-strapped MCD.
MCD Standing Committee chairman said: “There are 4,816 properties which have already been identified and are liable to pay Rs.5 lakh in tax per year. We can get Rs.712 crore if these properties are targeted. So why should we burden the people unnecessarily.”
More for slums too
Furthermore, to ensure that more development work is carried out in the run-up to the elections in 2012, the civic body has increased allocation for roads, sanitation services and streetlights in its budget for the next fiscal. The municipal councillors have also been empowered with Rs.2.05 crore.
While the councillors would continue to have Rs.50 lakh to spend in their respective wards, they would have an additional Rs.1.55 crore to be spent on roads, improving sanitation services among others. In addition, another Rs.5 crore has been earmarked to be spent on development work in unauthorised colonies.
The Standing Committee has also recommended an increase of Rs.579.20 crore over the Rs.6364.43 crore expenditure for 2011-12 proposed by the Commissioner, taking the total to Rs.6943.63 crore.
The schedule of taxes would remain the same as the financial year 2010-11 but the MCD has already announced that it would not collect taxes from unauthorised colonies and rural and urban villages and has also approved a 17 to 28 per cent hike in toll tax in various categories. Mr. Chandolia also said to cope up with demands from councillors having large wards, the Mayor's and Standing Committee chairman's discretionary funds have been increased from Rs.5 crore to Rs.10 crore.
