Bring all commercial & residential properties in Delhi under tax net to augment revenue: LG to MCD

Delhi Lt Governor V K Saxena has asked civic officials to bring all properties -- commercial as well as residential -- under the tax net so that the municipal corporation's income grows and it can provide better services to people.

In a review meeting on Friday, the LG also directed the Municipal Corporation of Delhi (MCD) to make all its services related to property tax filing, mutation and building plan sanction among others IT-enabled by July 31.

Saxena expressed concern that 65 percent of property owners in the city paid no tax and directed that all properties within the city limits -- commercial as well as residential -- be brought under the tax net, according to a statement from the LG office.

An MCD official said that the directions of the lieutenant governor will be complied with. The civic body is making all possible efforts to boost its revenue and widen its tax net. The LG's direction came amid plans of the MCD to collect tax from major commercial establishments located in unauthorized colonies in Delhi.

The LG reiterated his resolve to turn the financial condition of the MCD from red to a robust one so that the civic body could serve the people in a better way.

Saxena said that non-payment of property tax by as many as 65 percent of the owners was an unfortunate, unfair and unviable situation.

''The entire city, and not only the 35 percent of residents of 11 lakh houses in regularised colonies, was availing of amenities and services offered by the municipal corporation. It would only be fair and justified that all pay property tax at differential rates as per their respective self-assessed financial status,'' he said.

He instructed officials to simplify the forms for property tax registration and ensure its Aadhaar linkage to help people come out and pay their taxes.

In this regard, the LG asked officials to take the people and resident welfare associations (RWAs) on board and address their concerns. Such partnership with the people, he said, will not only facilitate honest self-assessment on part of the assesses but also increase tax collection.

According to the officials, there is hardly any tax collection from unauthorized colony areas so the civic body is considering tapping big commercial properties in such localities and realizing tax from them.

They said any formal proposal in this connection is yet to be moved but the plan is under discussion at MCD meetings on financial issues.

An MCD official said the civic body is planning to widen its tax net to boost revenue generation under which it is also likely to review its property tax collection system in a way that it does not put the burden on people.

The MCD earlier this month had decided to hike the transfer duty by 1 percent on properties priced above Rs 25 lakh across the city to improve its financial condition.

The official said that meetings are being held to ponder over increasing revenue generation by simplifying and streamlining the property tax system.

''Property tax system will be streamlined in a way that it does not put the burden on people. We are also likely to widen our tax net. Bigger commercial properties in unauthorized colonies may have to give tax,” the official said.

The official added that the property tax system is likely to be kept in a way that people living in different areas have to pay taxes accordingly.

For instance, the property tax of those living in posh colonies is likely to be higher than those of unauthorized colonies.

''We are also planning to launch a campaign to motivate people in unauthorized colonies to pay taxes,'' the official said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)