Cash-strapped North MCD implements report on tax hike

Facing <g data-gr-id="31">financial</g> crisis, North Delhi Municipal Corporation has decided to implement the recommendations of the third Municipal Valuation Committee to increase revenue collection. The committee had presented its report around four years back which was presented in the standing committee of the erstwhile MCD for consideration but was being constantly postponed by all the three civic bodies without any discussion.

Once implemented, property owners, involved in commercial activities, and traders coming in the Corporation area will have to pay more taxes as categories of commercial properties will be changed.

MP Bhardwaj, Chairman of Standing Committee, said that in order to raise property taxes, the Corporation has decided to change categories of properties in industrial belts, hotels, banquet halls, clubs, private hostels, guest houses for students and vacant lands.

The Corporation has also decided to conduct a detailed survey of properties coming under these categories in order to incorporate changes.

“As the north MCD is reeling under financial hardships, the need of the hour is to generate more revenue from existing sources. Rather than imposing new taxes, it is better to raise money from commercial properties. The third Municipal Valuation Committee, in its report, has recommended <g data-gr-id="37">change</g> is categories and the MCD has decided to implement it accordingly. The Standing Committee has passed the proposal which will go to the House for the final nod. Once the House will give a go-ahead, it will be implemented in the area,” the Chairman said.

It may be noted that the Corporation, which is facing a financial crunch, are claiming to make all efforts to generate money. 

Apart from increasing revenue collection, the Corporation has also been putting pressure on the Delhi government to pay its due share of approximately Rs 2,000 crore and to Delhi Development Authority to pay Rs 590 crore. The Corporation Mayor has even feared that if Delhi government does not act fast, a situation would arise when the sanitation services and the like would collapse and the only ones to suffer, because of this, would be the common man.