EDMC ignores MVC report, keeps property tax rates unchanged

With an eye on the municipal elections, BJP-ruled East Delhi Municipal Corporation (EDMC) on Thursday announced a major relief to property tax payers in its area.  The agency, using special powers under DMC Act, decided to collect property tax on previous rates keeping aside recommendations of the Third Municipal Valuation Committee (MVC) report. 

The EDMC, ignoring implementation of the MVC, offered immunity in tax collection till July 31 instead of June 30, waiving penalty and interest on payments. Though the decision will provide a relief to its tax payers but it is likely to lead a fresh round of tussle between the East Corporation and the AAP-led Delhi government as the latter has strictly asked them to follow the implementation.  

“With the implementation of MVC, tax payers were forced to pay up to 16 times higher taxes for the properties. Owing to this, the Corporation had witnessed sharp decline in revenue generation and very few people have shown their interest to pay the tax. The civic body not just recorded sharp decline in tax payments but faced wrath of the tax payers as well. Now, the Standing Committee has unanimously passed a resolution staying payment of higher rates and have extended date to pay on discounted rates also,” said Jitender Chaudhary, Chairman Standing Committee.

He said that the Corporation has used its special powers to pass the resolution as the House had earlier stayed recommendations of the MVC for property tax payment. “As announced earlier, we have offered people to pay taxes on previous rates. Those who have paid taxes as per MVC recommendations will adjust surplus amount in the next fiscal years. To minimise confusion in this regard, EDMC has asked its officials to follow the order with immediate effect,” added the Chairman. 

Notably, in the first week of May, Mayor of the EDMC Satya Sharma, announced a roll back of implementation of the MVC informing that a committee was constituted to look into the various aspects regarding implementation. 

The committee later presented its report to the House following which unanimous decision was made to stay the implementation. “Property taxes were raised by four to seven times after the MVC report was implemented from April. The Delhi government, despite High Court’s order, did not implement the fourth Delhi Finance Commission report and on the other hand, ordered the Corporation to introduce such anti-people measures,” claimed the Mayor.