India News | MCD Mulling over Tax Collection from Major Commercial Establishments in Unauthorised Colonies
Get latest articles and stories on India at LatestLY. With an aim to improve its financial health, the Municipal Corporation of Delhi (MCD) is contemplating to collect tax from major commercial establishments located in unauthorised colony areas of the national capital, official sources said on Thursday.
New Delhi, Jun 16 (PTI) With an aim to improve its financial health, the Municipal Corporation of Delhi (MCD) is contemplating to collect tax from major commercial establishments located in unauthorised colony areas of the national capital, official sources said on Thursday.
According to the sources, 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.
They said any formal proposal in this connection is yet to be moved but the plan is under discussion at MCD meetings on financial issues.
An MCD source 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.
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He said currently the property tax collection from unauthorised colony areas is almost negligible despite the fact that the civic body provides basic amenities like sanitation in these areas.
"Instead of troubling common public living in unauthorised colonies with property tax, we are planning to go after big commercial properties for tax collection. These commercial establishments may include car and bike showrooms, supermarkets, hotels or restaurants etc. Such commercial establishments can pay property tax, which they should anyway pay as they use our services," an MCD source told PTI.
He said at present most of the residents as well as commercial establishments do not pay tax to the civic body.
He said that the move will give a much needed boost to cash-strapped MCD, which had been facing issues in paying salaries of its employees.
The sources said meetings to explore possible solutions to strengthen the financial condition of the MCD are being held regularly.
Possibilities of widening the tax net, better tax collection and rationalisation of tax slabs are also being discussed to arrive at possible solutions, they said.
The MCD earlier this month had also 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.
The erstwhile three civic bodies -- North, East and South Delhi Municipal Corporations -- were reunified as the Municipal Corporation of Delhi on May 22 with IAS officers Ashwani Kumar and Gyanesh Bharti assuming charge as the new municipality's special officer and commissioner, respectively.
(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)