With Assembly polls drawing closer, the cash-strapped Municipal Corporations in Delhi have decided to offer political sops to voters at the cost of their revenue. The ruling BJP on Monday decided to withdraw the change in tax schedule for commercial properties that would result in a loss of Rs300 crore to the three civic bodies.
Delhi BJP president Vijay Goel on Monday announced that all the three corporations would roll back the change in schedule that will benefit lakhs of residents as the tax rate would be reduced by 5 to 10 per cent on each category of properties.
The Municipal Corporations had imposed 20 per cent property tax on commercial units operating out of residential properties, measuring 100 sq m and above. Earlier, this tax rate was applicable on properties of 150 sq m and more. According to officials, this change in tax schedule brought a large number of commercial properties under higher tax slab, thus, augmenting the revue collection of the civic bodies. They said the move would have earned approximately Rs300 crore to the three corporations — Rs200 crore to South Delhi Municipal Corporation (SDMC), Rs70 crore to North Delhi Municipal Corporation (NMC) and Rs30 crore to the East Delhi Municipal Corporation (EDMC).
However, the deliberative wing of the civic bodies had to decide on revoking the proposed changes keeping in view the upcoming Assembly polls in November this year. “The BJP suggests the three corporations to withdraw the change in property tax schedule for commercial units. This includes showrooms, godowns and other commercial activities running from residential units. We will not put any financial burden on people who are already hit by spiraling price rise of all essential commodities,” Goel said.
The decision would benefit the traders and businessmen in areas, like Chandni Chowk and adjoining markets, Karol Bagh and its extension, Asaf Ali Road, Jasola, Nehru Nagar, Central Market in lajpat Nagar and INA among others. Officials said the decision would also be applicable on all district centres and metropolitan city centres.
Meanwhile, Goel also demanded from the Centre to exempt punitive action on all unauthorised constructions that have come up in the Capital till June 30, this year. He said the Government has only been exempting the unauthorised constructions till February 8, 2007, which was unjust. “The party has asked the three Municipal Corpor-ations to write to the Union UD Minister to amend the Master Plan of Delhi so as to benefit maximum population,” the BJP president added.