The Times of India 11.12.2009
Will house tax hike plug hole in MCD's coffers?
NEW DELHI: MCD might have proposed an increase in property tax for both residential and commercial properties, and new taxes - to better its
services - but at the other end, crores of rupees are still spilling out of its coffers due to a lack of proper checks and balances.
Salaries paid to ghost employees is not the only problem. MCD is also losing money because of dishonoured cheques received as payment for property tax. The civic agency's budget says it loses crores in this manner, but there is no accounting of the exact amount. MCD has now decided to set up a committee at the central level to monitor the matter and initiate action against defaulters.
Said MCD commissioner K S Mehra: "Most dishonoured cheques we get are meant to be payment for property tax. The matter is not always pursued. But action will now be taken against defaulters."
Neither has MCD's attempt at bringing more people into the tax net been very sucessful. It had come up with an amnesty scheme earlier this year under which people who had not paid tax, would not be levied a penalty or interest on the pending amount. The last date for the scheme was October 31. But only 46,070 people came forward, from who MCD got Rs 100 crore.
Said Leader of the House Subhash Arya: "We were expecting to get Rs 1,000 crore. We have now extended the payment deadline to December 31. The Survey of India is carrying out a survey of properties in Delhi, details of which will be made available to MCD so that we can take action against property tax defaulters. Right now only nine lakh people pay property taxes, while there are 30 lakh properties in Delhi."
According to sources, the major defaulters are residents living in unauthorised regularised colonies. Meanwhile, government bodies like the Metro and Delhi Development Authority also owe MCD over Rs 500 crore. Said an MCD official: "The matter concerning Metro is ongoing in court, while the DDA issue has been taken up with the L-G."
But the money drain continues. MCD loses crores of rupees over parking. For instance there are over 250 illegal car parks in MCD areas. Said an MCD official: "We tried legalising some of these parking lots but did not get permission from the traffic police."
Salaries paid to ghost employees is not the only problem. MCD is also losing money because of dishonoured cheques received as payment for property tax. The civic agency's budget says it loses crores in this manner, but there is no accounting of the exact amount. MCD has now decided to set up a committee at the central level to monitor the matter and initiate action against defaulters.
Said MCD commissioner K S Mehra: "Most dishonoured cheques we get are meant to be payment for property tax. The matter is not always pursued. But action will now be taken against defaulters."
Neither has MCD's attempt at bringing more people into the tax net been very sucessful. It had come up with an amnesty scheme earlier this year under which people who had not paid tax, would not be levied a penalty or interest on the pending amount. The last date for the scheme was October 31. But only 46,070 people came forward, from who MCD got Rs 100 crore.
Said Leader of the House Subhash Arya: "We were expecting to get Rs 1,000 crore. We have now extended the payment deadline to December 31. The Survey of India is carrying out a survey of properties in Delhi, details of which will be made available to MCD so that we can take action against property tax defaulters. Right now only nine lakh people pay property taxes, while there are 30 lakh properties in Delhi."
According to sources, the major defaulters are residents living in unauthorised regularised colonies. Meanwhile, government bodies like the Metro and Delhi Development Authority also owe MCD over Rs 500 crore. Said an MCD official: "The matter concerning Metro is ongoing in court, while the DDA issue has been taken up with the L-G."
But the money drain continues. MCD loses crores of rupees over parking. For instance there are over 250 illegal car parks in MCD areas. Said an MCD official: "We tried legalising some of these parking lots but did not get permission from the traffic police."
