Urban News

The Pioneer  19.10.2010

Parvaiz Sultan | New Delhi

Having basement parking or stilt in residential properties will not draw rebate in property tax for building owners as proposed by the deliberative wing of Municipal Corporation of Delhi in February 2008. Citing that such rebate not only will have adverse effect over revenue collection of the civic body but the move will also create jealousy among people, Municipal Commissioner turned down the proposal. A proposal for repealing of the decision will be placed before next standing committee meeting on Tuesday. The civic body has announced a 75 per cent rebate on property tax to the part of basement or stilt of residential properties which is being used for parking purposes.

While rationalizing its current decision, the civic body now saying basement and stilt usually used fro parking in cooperative group housing societies, though basement parking or stilt are also created in other residential properties by their owners but they are hardly use for the purpose.

“These spaces are illegally used for other purposes. Like it has been observed normally that basement parking or stilt are used fro commercial purposes or converted into godowns,” said an official of MCD. He also added the decision of granting rebate is not feasible also as it will be difficult for MCD to ascertain that the area is actually being used for the parking?

It was further stated rebate will principally be in favour of Group Housing Societies as recently as per the provisions they are getting 15-20 per cent rebate if the payment of property tax is made in advance.

“A plot measuring 100 square metres or below are already given 10 per cent rebate. If further concession is also granted to them, they will pay minimum property tax hence the revenue collection of MCD will be affected.

And on the other, the Group Housing Societies will be entitled to have huge concession and it will be not justified for people belonging to other categories,” said he.

He also said with the said proposal for repealing of previous plan, another proposal for charging property tax according to commercial rate from those properties, whose parking are being used as parking or paid parking will also be bring for approval in the standing committee.