The Hindu : New tax regime not to spare flower, sweet shops

Online edition of India's National Newspaper
Thursday, Mar 11, 2004

New Delhi

New Delhi

New tax regime not to spare flower, sweet shops

By Our Staff Reporter

NEW DELHI, MARCH 10. Managements of religious structures and places of worship in the city having commercial establishments including flower and sweets shops operating from their premises will have to pay house tax from April 1.

However, they will not have to pay house tax for the area used exclusively for religious purposes, the Municipal Commissioner, Rakesh Mehta, said here today after releasing a guidebook on Unit Area Method for assessment of property tax in the Capital, which comes into force from the next financial year. So far, religious structures had been exempted from house tax.

The guidebook, prepared by the Municipal Corporation of Delhi, is aimed at helping citizens file their house tax returns under the new system on time. To be made available to the public from March 15, the guidebook has been priced at Rs. 20. "Taxes can be paid online at the Citizens' Service Bureau located in each Zone or in the property tax department," he said. The civic body would also set up touch screen kiosk at these centres, where citizens can calculate their house tax, he added.

Terming the implementation of new house tax system as "historic", he said in Unit Area Method the onus of payment of property tax is on the citizen like income tax. "This would be fully computerised, supported by GIS Maps and driven by software, which will enable the citizen to interact with the MCD through its website www.mcdonline.gov.in," he said, adding: "I am going to Bangalore on Thursday to meet senor officials of Infosys regarding the software."

Denying reports that with the implementation of the new system, collection of house tax would drop to around Rs. 500 crores from 1,000 crores, he said the revenue would come to around Rs. 1,250 crores per annum.

Mr. Mehta said the MCD would soon publish the list of architects, who can determine the covered area of the properties more than 100 sq. m. Giving details of various steps being taken to enforce the new system, he said the MCD was planning to set up help-desks, call centres, and organise special awareness camps, besides deputing special staff for the task.

Referring to the categorisation of farmhouses, educational institutions and hospitals in the Capital, which have been left out by the Municipal Valuation Committee, Mr. Mehta said a special committee would determine it very soon.

He said resident welfare associations (RWAs) and co-operative group housing societies, could be given up to 35 per cent of the house tax collection from their respective areas in case they took the responsibility of sanitation and cleanliness and maintenance of gardens of their locality. "They would have to sign a memorandum of understanding with us," he said.

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