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Delhi govt should compensate MCD for tax shortfall: BJP

The ruling BJP in MCD on Thursday demanded that the Delhi government must pay Rs 1,286 crore to the civic body to "compensate" it for the shortfall in property tax since the implementation of unit area method.



New Delhi: The ruling BJP in MCD on Thursday
demanded that the Delhi government must pay Rs 1,286 crore to
the civic body to "compensate" it for the shortfall in
property tax since the implementation of unit area method.

Leader of the House in MCD, Subhash Arya said that the
new method was introduced in the year 2004-05.

In subsequent years, MCD`s property tax collection
recorded a decline ranging between Rs 170.63 crore to Rs
290.29 crore, he said.

Arya said at the time of implementation of the unit area
method for assessment of property tax, it was felt that there
might be a decline in the collection of tax. "With a view to
compensating the Municipal Corporation of Delhi, it was
decided by the Delhi Government to sanction grant of
equivalent amounts," he claimed.

"It is the moral duty as well as financial obligation of
the Delhi Government to compensate MCD for the fall in
collection of property tax," he claimed and demanded that Rs
1,286 crore be paid to MCD as "compensation".

The unit area method is based on fixing a unit area value
per square metre of covered space for calculation of property
tax. The tax for a particular property is based on its annual
value arrived at by multiplying unit area value assigned to
the colonies by the covered area of the property and the
factors of occupancy, age, structure and use.

PTI

From Zee News

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