With the national Capital facing two successive polls in less than six months, the prolonged stay of the Model Code of Conduct has apparently led to a decline in property tax collection by the municipal corporations. While the North Delhi Corporation (NMC) has just managed to equal its previous years’ collection, the South and East Delhi Corporations have suffered revenue losses.
Officials attribute the revenue shortfall to the Model Code of Conduct which prevented them from initiating coercive action against major tax defaulters and leading sustained drive against them. A majority of these tax evaders include prominent government organisations and offices that have not been paying taxes since several years. It assumes significance as property tax is the prime source of revenue for the civic bodies in the Capital.A senior official of the Property Tax Department in South Delhi Corporation said the civic body had in the previous year collected a huge sum of `122 crore from DDA which resulted in massive tax collection. But since the matter is pending before the court over remaining amount of tax dues, the officials could not determine tax from the housing agency.