In a bid to appease residents and elevate compliance levels rates, the Municipal Corporation of Delhi (MCD) has determined to waive property tax charges tax for residents of rural areas.
Notwithstanding this exemption, commercial establishments will still be responsible for property tax payments. The decision comes in response to escalating pressure and protests orchestrated by the Bhartiya Janta Party (BJP). Property tax collection plays a crucial pillar of MCD’s fiscal strength. However, achieving adherence has been a persistent hurdle. Among the 1.5 million registered owners, merely 1.3 million are currently adhering to their financial commitments.
With immediate effect, the Municipal Corporation of Delhi (MCD) will halt the collection of property taxes from dwellers of rural neighborhoods. Mayor Shelly Oberoi has directed officials to cease issuing property tax notifications to property owners in rural residential areas. The imposition of property tax will remain subject to existing collective procedures by encompassing all commercial properties situated within MCD’s administrative domain.
“We collaborated with the heads of Delhi’s rural areas and property tax officials to gain insights and perspectives and MCD determined to cease collection of property tax from rural residential areas in Delhi ” Oberoi asserted.
Also, additionally noted that during the BJP ‘s 15-year rule in MCD residents were relentlessly bombarded with property tax notices on an annual basis. Deputy Mayor Aaley Mohammad Iqbal affirmed that property tax will be discontinued in each of Delhi’s 70, constituencies encompassing rural areas, regardless of their classification under the ‘Dora’ or ‘extended lal dora’ system. He pointed out that the decision stemmed from a meeting organized with the mayor and deputy mayor on Friday, which brought together the heads of 360 villages.
Commercial establishments situated on 2,138 roads identified by MCD will still be subject to property taxes. Nevertheless, individuals running small-scale businesses in village areas will be exempted from this tax, as per MCD officials.
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Concurrently, Bhartiya Janta Party (BJP) officials have asserted that the resolution was made in response to pressure and protests orchestrated by the BJP within the MCD. Delhi BJP’s representatives, backed by village leaders, vehemently objected to property taxes in villages during an MCD meeting and through coordinated demonstrations, leading the AAP to reexamine its resolution.
Property tax collection troubles afflict Delhi municipal corporation. while property tax constitutes a major revenue stream, merely 37% of Delhi’s properties are tax-compliant.
