The Hindu : New Delhi News : No increase in property tax

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Saturday, Mar 14, 2009
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New Delhi

No increase in property tax

Staff Reporter

Proposal rejected amid uproarious scenes at MCD meeting

NEW DELHI: A controversial proposal to increase property tax in the Capital by 24 per cent tabled at the Municipal Corporation of Delhi Standing Committee meeting on Friday was rejected amid uproarious scenes leading to adjournment of the meeting.

Leader of Opposition and Congress councillor Jai Kishan Sharma alleged that the BJP had violated the model code of conduct for the upcoming Lok Sabha polls by rejecting the proposal. He also said that he planned to complain about the matter to the higher authorities including the Election Commission and Delhi’s Lieutenant-Governor Tejendra Khanna.

“The Standing Committee has gone against the law and action should be initiated against it because till the time the code of conduct is in place, any new policy relating to the people of Delhi cannot be either passed or rejected. The timing of rejecting this proposal needs to be questioned and explained by the BJP leaders running the civic body,” he said.

“Even if the MCD House or Standing Committee rejects the proposal to hike property tax, the increase is inevitable. The BJP is just trying to delay its implementation till the elections are over, but it will happen in the end as the MCD is cash-strapped due to its financial obligations under the Sixth Pay Commission and other expenses and needs more funds. They tried putting off the increase in 2007 but cannot continue like this as the consumer price index has risen over the years,” he added.

Congress’ pressure

Meanwhile, the BJP alleged that the proposal was presented at the meeting on the directions of the Delhi Government and charged the Congress with “unnecessarily politicising the issue”.

Standing Committee chairman Vijendra Gupta said: “The MCD Commissioner K.S. Mehra was under pressure from the Congress to bring about such a proposal. At a meeting held in August 2008, the Delhi Government had directed the MCD to enhance the rate of taxes as per the consumer price index. It also threatened to reduce the assigned share of taxes of the MCD if it did not raise the tax rates. But all efforts of the Delhi Government to increase taxes on citizens through the civic body will not be allowed to succeed.”

“The MCD had increased the revenue allocated for development projects this financial year and would increase their revenue generated from property tax by bringing more people under the tax net. There can be no increase in property taxes as the schedule of taxes has been finalised by us already in the budget estimates for the next financial year,” he added.

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