The Hindu : New Delhi News : Confusion over property tax concessions

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Friday, Jul 23, 2004

New Delhi

New Delhi

Confusion over property tax concessions

By Our Staff Reporter

NEW DELHI, JULY 22. The much trumpeted rebate on house tax announced for various categories by the Hardship Committee in May appears to have resulted in an "ego clash'' among the ruling Congress Councillors, leading to confusion because of which people have not started submitting their house tax yet.

Nearly two month after the Hardship Committee announced a number of concessions for various sections and simplified the system for depositing property tax, the MCD Standing Committee has not approved the decisions.

The clash of egos was evident when the issue was raised by the only Opposition member in the Standing Committee, Vijender Kumar Gupta, at its meeting held here today. He alleged that there was general confusion on the issue and people did not know what to do even as the last date for filing returns was fast approaching.

The senior Congress leaders, the Leader of House, Satbir Singh, the Standing Committee Chairman, Mukesh Goel, and his deputy, Ashok Jain, stated that the MCD was not bound to accept the recommendations of the Hardship Committee. Among its important recommendations included reducing the age of senior citizens, eliminating the need for filing property tax return through architects and extending the 10 per cent rebate from 50 sq. metre plot to 100 sq. m.

These were termed as people-friendly and widely welcomed by the residents.

Referring to the projected revenue loss to the civic body if these recommendations were accepted, Mr. Goel said: "We have to protect the financial interest of the MCD as well. We cannot accept the recommendations in this form." He was referring to the letter of the Accessor and Collector, Firoz Khan, stating that the MCD revenue would drop by Rs. 400 crores if these recommendations were accepted.

The Hardship Committee member and Congress Councillor from Janakpuri, Sanjay Puri, who was prevented from speaking on the issue by his leaders claimed that the matter was discussed and approved by the Delhi Chief Minister, Sheila Dikshit, before being announced. He contested the statement of the Municipal Commissioner, Rakesh Mehta, that the delay in taking a decision on the issue was because the recommendations had come to him only two days ago. "The letter was sent well in time. This is nothing but an attempt to prevent the people from getting the benefits," Mr. Puri alleged just before he was asked by Mr. Singh to sit down. Mr. Puri also claimed that there would be no drop in revenue collection if all the properties were brought under the tax net.

Soon after the meeting, a senior Congress Councillor alleged that the opposition and delay to the Hardship Committee recommendations was because the leadership apprehended that if accepted the credit would go to Mr. Puri.

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