Lieutenant Governor Vinai Kumar Saxena on Saturday directed the Municipal Corporation of Delhi (MCD) to bring all properties — commercial as well as residential -- under the tax net to improve its financial conditions so it can provide better services to people.

Expressing concern that 65 per cent of the geographical area of Delhi did not pay any property tax, the Lt Governor directed officials to simplify the forms for property tax registration and ensure its Aadhaar linkage.

In a review meeting on Friday, the Lt Governor also directed the civic body to make all its services related to property tax filing, assessment, recovery, mutation and building plan sanction among others IT-enabled by July 31.

The Lt Governor instructed the MCD officials to explore all possible ways of revenue enhancement and reiterated his resolve to turn the "red financial status of the MCD to a robust green".

The Lt Governor's direction came amid plans of the MCD to collect tax from major commercial establishments located in unauthorised colonies in Delhi.

Property tax remains one of the main sources of revenue for the MCD. The total property tax collection for 2021-22 was  Rs 2,032 crore. Data from MCD shows that around 11.50 lakh properties paid the tax during 2021-22.

According to the officials, there is hardly any tax collection from unauthorised colony areas so the civic body is considering to tap big commercial properties in such localities and realise tax from them. Saxena said that non-payment of property tax by as many as 65 per cent of the owners was an unfortunate, unfair and unviable situation.

 "The entire city, and not only the 35 per cent of residents of 11 lakh houses in regularised colonies, was availing of amenities and services offered by the municipal corporation. It would only be fair and justified that all pay property tax at differential rates as per their respective self-assessed financial status," he said.

 In this regard, the LG asked officials to take the people and resident welfare associations (RWAs) on board and address their concerns. Such partnership with the people, he said, will not only facilitate honest self-assessment on part of the assesses but also increase tax collection.

An MCD official said the civic body is planning to widen its tax net to boost revenue generation under which it is also likely to review its property tax collection system in a way that it does not put burden on people. The MCD earlier this month had decided to hike the transfer duty by 1 per cent on properties priced above Rs 25 lakh across the city to improve its financial condition. During the review meeting, the Lt Governor ordered the linking of this database to government departments that provide services related to food security, pensions, maternity benefits and other welfare schemes to enable automatic updating or deletion of names upon birth or death.