NEW DELHI: With the civic body elections round the corner, the Municipal Corporation of Delhi on Friday dropped a proposal to double property tax on rented commercial properties besides increasing tax on rented residential properties and farmhouses in its Budget for 2007-08.

After weeks of deliberations, the MCD House finally adopted the Budget tabled by Leader of the House Jitender Kochar that proposes to increase the Councillors' fund for area development every year from Rs.85 lakhs to Rs.1 crore. It also proposes to construct 17 multi-level parking lots across the city, increase old age pension and hike the grants given to widows for their daughters' marriage. Alarmed over a fall in property tax collections, Municipal Commissioner A. K. Nigam had sought a steep increase in the existing rate of property tax, particularly on rented properties from 10 per to 20 per cent. Similarly, for a rented residential property falling in `A' to `E' category colonies, Mr. Nigam had proposed 15 per cent tax, a 5 per cent increase, besides seeking a hike in other rented residential properties and on farmhouses.

However, the opposition Bharatiya Janata Party as well as ruling the Congress Councillors had opposed the move. Succumbing to pressure, the Deliberative Wing of the MCD dropped the proposal. However, Mr. Kochar hoped that the MCD would increase its property tax collections this year.

In his Budget speech, Mr. Kochar said 17 new automated multi-level parking lots would be constructed across the Capital, particularly near major shopping centres. Similarly, a new flyover on Shayama Prasad Mukherjee Marg, a rail transit camp near the Old Delhi railway station and a rest room complex on Asaf Ali Road for the benefit of attendants of patients admitted to LNJP Hospital would also be constructed, he announced. Mr. Kochar further said the MCD would construct a rehabilitation colony for slum-dwellers at Savda Ghera and other 250 flats for weaker and poorer sections of society at Dwarka. Women from rural areas coming to municipal hospitals for deliveries would get Rs.700 while those from urban areas would get Rs. 600.

Printer friendly page  
Send this article to Friends by E-Mail