In its budget for the financial year 2016-17, South Delhi Municipal Corporation has approved a hike in property and professional taxes. After the Corporation predicted a loss of Rs 200 crore, this step comes as a measure to increase its revenue. The implementation of the hike will bring additional revenue of Rs 300 crore to the Corporation.
SDMC Chairman Radhe Shyam Sharma finalised the Revised Budget Estimate 2015-2016 and Budget Estimate 2016-17 and said that the Congress government’s move to trifurcate MCD was strictly political leaving a monetary burden on all the three Corporations.
Sharma approved a hike in property tax which comes as a move to increase the Corporation’s revenue. He said that the revenue in parking, advertising and toll taxes has gone down as compared to the previous year. He added that if South MCD continues to deliver services this way, then the Corporation will head towards a future where it will have to incur a loss of Rs 1,200 crore.
The Corporation, while expecting the loss for the first time ever, announced a steep hike in property taxes, advertisement charges, etc.
Last month, Commissioner Puneet Kumar Goel proposed two per cent hike in A and B categories, one per cent hike in C, D and E categories.
Though there is no hike proposed in special non-residential properties but several categories, which were exempted earlier, were included.
“The agency is running in loss and the need of the hour is to increase its revenue. Besides proposing new tax and new slabs, we have been working on new policies for parking and advertisement as both are major sources of income for the Corporation. If recommendations of the Seventh Pay Panel take shape, it will hole an extra Rs 300 crore into the Corporation’s pocket. With the implementation of the hike, the Corporation will get additional revenue of Rs 300 crore,” said the Commissioner.
The South MCD is planning to install an electronic toll system for vehicular entries on the borders of the national Capital, citing problems in tax collection through contractors in this segment.
“The SDMC has issued tender for engaging a new contractor for a period of nine months. During this period the civic body will also plan for installing an e-toll system at entry points on the border of Delhi,” a senior municipal official said.
Following the Supreme Court’s permission to the present toll tax contractor SMYR Consortium to exit after January 31, the SDMC which collects toll taxes on behalf of all the three municipal corporations in Delhi, is in the process of hiring a new contractor.