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Amidst sloganeering from the opposition, the East Municipal Corporation passed the proposal for collection of property tax from unauthorised colonies. The standing committee of the body had already given a nod to the move in its meeting held on June 19.
The move is expected to affect the 243 unauthorised colonies under the body. While the BJP, being in majority in the East Delhi house, passed the agenda, the Congress raised an objection. “We do not provide any services in the area, how can we tax them?” Leader of the Opposition Varyam Kaur said.
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However, the BJP countered this stating that the corporation is responsible for “sanitation, street lighting and anti-malaria sprays in these areas just like the rest of Delhi”. However, according to Mayor Harshdeep Malhotra, the corporations do not carry out any developmental works in unauthorised colonies “as the MCD budget comes from the government and it dictates that no developmental works can be carried out in these colonies”.
The civic body has clarified that, under the unit area method system, the onus of paying property taxes lies with all owners and is similar to the onus of paying income tax to tax authorities. “We did not even need to bring this proposal to the House since collection of property tax from all owners is a mandate provided to us in the Delhi Municipal Act, 1957,” Malhotra said.
The corporation approved the move, setting aside a circular of the Director Local bodies advising it not to collect taxes from unauthorised colonies.
The cash-strapped East body is using this as one of the measures to improve its financial condition. Officials stated that while the Kejriwal government had advised them to increase the amount of taxes levied, they prefer bringing in more people in the tax net rather over-charging existing tax payers.
The corporations have been demanding that property tax be levied on all 1,642 unauthorised colonies (according to the Department of Urban Development website) since it was a unified body.