South Delhi Municipal Corporation withdraws plan to hike property tax

Increasing tax properties is not an effective solution in increasing revenue

View of the Rashtrapati Bhavan and administrative buildings in central Delhi. BhavenJani/Shutterstock

The South Delhi Municipal Corporation (SDMC) has scratched their plan to hike property tax in order to increase revenue, reported Hindustan Times. Instead, they will halve the capital granted to councillors for local area development, said the chairman of the civic body’s highest decision-making panel Rajesh Gahlot.

Ramesh Verma, SDMC additional commissioner, presented the budget proposals for 2021-2022, indicating a change from three to two categories of property for the levy of tax, decreasing the amount of tax for thousands of residential neighbourhoods.  

During a budget meeting, Gahlot mentioned that increasing tax on properties isn’t an effective solution to increase revenue.  

“There are other ways to increase revenue so instead of hiking property tax, we have decided to bring more people under the tax net of the SDMC. To boost revenue, fixed compactor transfer stations (FCTS) of SDMC will be used as advertisement sites,” he added.  

To warrant maximum revenue collection, SDMC has announced doorstep collection of property tax from the 2021-2022 financial year.  

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The SDMC also plans to organise Yoga classes in all its parks with minimal charge.  

Gahlot said, “Yoga teachers will be appointed to teach students and other participants. With the move, the corporation will not only help people to stay fit but also generate revenue.”  

SDMC will be charging fines if the Delhi Jal Board (DJB) falls through in reinstating SDMC roads after digging and cutting sewer and water-related works.  

“The corporation is also making a provision to collect restoration charges from DJB for carrying out work on municipality roads but not restoring or repairing the same,” Gahlot stated.