The Hindu : New Delhi News : RWAs refuse to pay tax

Online edition of India's National Newspaper
Wednesday, Sep 29, 2004

New Delhi

New Delhi

RWAs refuse to pay tax

By Our Staff Reporter

NEW DELHI, SEPT. 28. Coming out openly in defiance of the newly introduced Unit Area Method for property tax calculation in the Capital, as many as 25 resident welfare associations of Ashok Vihar chapter of Apex Association of DDA Colonies have resolved not to pay any tax till their demand for lowering of category of their flats by a minimum of two steps -- from `D' to `F' -- is conceded by the Hardship and Anomaly Committee of MCD before which it has been pending for the past few months.

At a meeting held this past week-end, the residents expressed their anger at the fact that the property tax has been increased "between six to eight times" The residents were anguished at the fact that their demand has not even been discussed at the full meeting of the Committee so far.

Noting that the flat owners were being asked to pay Rs. 941 instead of Rs 110 for LIG flats and Rs.1837 instead of Rs 280 for the MIG flats, the meeting resolved not to pay the increased property tax till the demands were accepted. The members also said that they were all prepared to forego the 15% rebate even if the final decision is not taken by October 30, which is the last date for payment of the tax.

Stating that most of the allottees had poor paying capacity and came from the lower and middle strata of the society, being either fixed wage earners, retired personnel or pensioners, the meeting also wondered how as per the calculation method the poorly-constructed flats with low rentals and no residual land cost, can be equated with plush, open and nicely built kothis in the same locality.

The chairman of the Apex Association, R.P. Agrawal, said the property owners who had paid 10 times as much property tax will not pay any more tax under the Unit Area Method as the MCD was going back from the terms and conditions of the Amnesty Scheme 1987 under which this amount was paid. The Apex Association also demanded that residential properties be treated at par with commercial properties while assessing rented properties and in such cases should be charged tax equivalent to that of the self-occupied ones.

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