Bring all commercial & residential properties under tax net to augment revenue: L-G to MCD

New 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 L-G 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 per cent 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 L-G's direction came amid plans of the MCD to collect tax from major commercial establishments located in unauthorised colonies in Delhi.

The L-G 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 per cent of the owners was an unfortunate, unfair and unviable situation.

"The entire city, and not only the 35 per cent 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 L-G 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 unauthorised colony areas so the civic body is considering to tap big commercial properties in such localities and realise 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 burden on people.