Urban News

The ultimate fate of the politically-sensitive proposal is, however, uncertain. Last year too, the municipal agency had proposed a hike, but it was rejected by the legislative wing. This year may not be very different.

In the new proposal, Categories A, B, C, D and E, which include colonies at the higher end of the scale, and where homeowners pay correspondingly higher levels of tax, are likely to be clubbed together into one category, paying property tax at the rate of 15 per cent.

The proposal is likely to suggest that the existing Categories F, G and H be made the second category, paying 10 per cent tax. Currently, Categories A and B are charged at 12 per cent; C, D and E at 11 per cent and F, G and H at 7 per cent.

Yogender Chandolia, Chairperson of the MCD Standing Committee, said that the proposal to raise taxes would be opposed at the next Standing Committee meeting. “There are people who owe MCD a lot of money in terms of property tax. I think what ails the MCD is not low taxes but the fact that it is not being able to extract the present rates from many people. There are many who owe MCD more than Rs 5 lakh as tax,” he said. 

Leader of the Opposition Jai Kishen Sharma also said he would oppose the move. “There is no way property tax can be increased. We will oppose the move if it is tabled at the Standing Committee meeting,” he said.

The proposal to raise tax is linked to the MCD’s poor finances. MCD has been trying to increase its revenues for the past several months. In November, it said it would collect tax from villages and unauthorised colonies, but the notification had to be withdrawn in the face of opposition from Standing Committee members who expressed themselves against taxing the “poor”. The members argued that MCD had no right to levy taxes in areas where it cannot provide good sanitation and safe drinking water facilities.