The Hindu 29.07.2010
Report on property tax tabled
Staff Reporter
A sub-committee to be set up to study it before approving its provisions
NEW DELHI: The much-awaited report of the Municipal Valuation Committee focusing on enhancing property tax revenue through efficiency improvements was finally tabled at the Municipal Corporation of Delhi's Standing Committee meeting on Wednesday.
The Standing Committee chairman Yoginder Chandolia, however, ordered the setting up a sub-committee to study it further before approving its provisions. The meeting also featured discussion on ways to increase property tax collection and concluded with the Municipal Commissioner being asked to submit an action plan in this regard next week.
Aiming at “more than doubling” the property tax revenue of the civic body, the independent committee has recommended upward revision in several factors for designating tax rates including upgrading the category of 168 colonies in the city due to their proximity to Delhi Metro lines. The upgrading of colonies to higher tax slot and revision of other factors coupled with new tax rates announced by the MCD in 2010-11 are estimated to more than double the revenue of Rs.696.49 crore per year to Rs.1,660 crore per year, according to the report of the Municipal Valuation Committee.
The committee “has decided to upgrade 168 colonies on account of metro lines and many more DDA developed colonies and special commercial properties”, the report stated. Other than the factor of location of colony within one km of metro line, it also took into consideration other parameters like capital value of land, rental value, infrastructure and proximity to commercial centres for recommending re-categorisation of colonies. Areas under the jurisdiction of the MCD are at present divided into categories A to H depending on infrastructural facilities there. Among the 168 colonies, 12 are proposed to be upgraded from B to A, 20 from C to B and 42 from D to C.
While the meeting highlighted the financial problems being faced by the civic body owing to shortfall in property tax collections, the councillors of both the ruling BJP and opposition Congress unitedly offered suggestions to increase the same.
