In a big relief to the people of Delhi, the Municipal Corporation of Delhi (MCD) has announced a house-tax waiver scheme, allowing residents to clear their house tax dues of 2024-25 and have all previous pending taxes written off.

Additionally, in the next financial year, 100 percent of house tax on 100-yard homes and residential-area shops will be scrapped, while properties between 100-500 yards will get a 50 percent waiver. For the first time, 1,300 housing societies - previously ineligible - will receive a 25 percent rebate. This transformative proposal is set to be passed in the MCD House on February 25.

After losing the turf to BJP in governing the national Capital, the Aam Aadmi Party (AAP)-led MCD on Monday introduced a major house tax waiver for property owners which can be witnessed as a direct confrontation between the two different regime in Delhi.

The announcement, made ahead of the mayoral polls in April, was delivered at a press conference by AAP leader, MCD Mayor Mahesh Khinchi, Deputy Mayor Ravinder Bhardwaj, and Leader of the House Mukesh Goel.

Announcing the initiative, Rajya Sabha MP Sanjay Singh said those who settle their 2024-25 house tax dues will have all previous outstanding amounts waived. The move aims at easing financial burdens on citizens and curbs corruption in tax collection, is set to be passed in the MCD House.

Singh highlighted that the decision is that those who pay their house tax for 2024-25 will have all their previous outstanding house tax dues, which have been a burden on them, completely waived.

“This is a major announcement: upon paying the house tax for 2024-25, all previous outstanding dues, which were a financial burden, will be written off. Secondly, the house tax for buildings ranging from 100 square yards to 500 square yards will be reduced by half. That is, houses within the 100-500 square yard range will now have their house tax cut by 50%,” he said.

He further noted that for buildings below 100 square yards, the house tax will be entirely waived. He said, “So, properties between 100 and 500 square yards will have their tax reduced by half, and those below 100 square yards will have their tax fully waived.”

Under the scheme, properties measuring up to 100 square yards, including residential shops, will be completely exempt from house tax from the next financial year. Houses measuring between 100 and 500 square yards will receive a 50 per cent waiver, while 1,300 housing societies that previously did not qualify for any exemption will now get a 25 per cent rebate. Singh further added that additionally, residential properties where commercial activities such as shops are running, and properties designated for commercial purposes, will also have their house tax waived.

Singh said, “There are over 1,300 apartments in Delhi that do not currently receive any tax exemptions or benefits. A crucial decision has been made regarding them as well: 1,300 housing apartments in Delhi will receive a 25% house tax waiver.”

Khichi said the AAP has always delivered on its promises and the latest decision is a major step towards easing financial burdens on homeowners. He said the MCD is also going ahead with plans to regularise 12,000 contractual employees, in addition to the 8,000 workers who have already been made permanent in the last two years. He emphasised that the tax-waiver scheme would not only provide relief to homeowners but also bring transparency in tax collection, reducing avenues for corruption.

Singh said the AAP has consistently worked for the welfare of the common man and this decision is a step towards fulfilling that commitment. He also highlighted that for the first time, 1,300 housing apartments in Delhi, which had never received any tax benefit, will get a 25 per cent rebate. Calling it a historic decision by the AAP-led MCD, he said the proposal would bring relief to thousands of families who have been burdened with high house taxes for years.

The AAP’s MCD incharge, Durgesh Pathak, said the move would put an end to corruption in tax collection as many homeowners had been harassed by officials over unpaid dues. He pointed out that under previous administrations; house tax was often used as a tool to extract bribes, leading to losses in the MCD’s revenue. Pathak also noted that before his party took charge of the civic body, MCD employees had not received salaries on time for years, but with improved financial management under the previous AAP government in Delhi, timely salary payments were ensured.