New Delhi

MCD offers special rebate to house tax payees

By Our Staff Reporter

NEW DELHI, JAN. 27. The Municipal Corporation of Delhi (MCD) has once again come out with a special incentive scheme to improve its property tax collection that has so far remained well below the target set at the time of introducing the new unit area regime. Under the scheme, the Corporation will allow property tax-payers to clear their outstanding dues and avail of a special rebate of 20 per cent on payment of arrears.The MCD has decided to give 20 per cent special rebate on payment of arrears due up to March 2004, while part payments made against arrear demands up to the same period will also get the special rebate. However, in case of disputed demands on account of ex parte assessments or in the case of set aside assessments remanded by the court of law, the tax-payer may file an application along with relevant document for rectification of assessment with the assessing officer concerned before January 31. Similarly, any property tax demanded for the period ending March 31, 2004, in respect of a property exclusively occupied and used by a society as an aided school or as a recognised school will continue to be eligible for 20 per cent rebate if the payment is made under the scheme. Any penalty levied for non-payment of property tax dues will be waived if other property tax dues are paid in full under the special scheme.

It may be recalled that when the new property tax regime was introduced last year, the civic body had set an ambitious collection target of Rs.1,200 crores but till now it has managed to garner only around Rs.400 crores. MCD sources said: "This poor collection of property tax has set alarm bells ringing in the Corporation as there is very little chance of tax collection going up sharply. So, the Corporation officials are making last ditch efforts to ensure that all their financial plans do not go haywire."

Already, succumbing to political pressure, the Corporation has made several changes in its original plan of unit area method and provided financial relief to many areas and colonies by lowering their grading. Special concessions have also been announced for rural area, unauthorised colonies and Janata Flats besides giving rebates for almost all the categories under the new regime. But still the MCD has failed to achieve the desired results in tax collection and has been mooting several other ways to tax Delhiites, one of it being the professional tax that was rejected by the MCD House.

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