No new taxes next fiscal, say Delhi municipal corporations

The standing committees of the three BJP-ruled municipal corporations of Delhi (MCDs) have made it clear that no new taxes proposed in the budgets by respective civic commissioners will be imposed in the next financial year. Though the BJP justified it as a pro-public move during the times of pandemic, the Opposition AAP took pot shots saying it is the “BJP’s farewell gesture” in the poll year.

The municipal corporations are due to go to the polls in April this year.

Col (retired) BK Oberoi, the chairman of the standing committee of South Delhi Municipal Corporation (SDMC), said before giving the final shape to the budget on January 18, they were holding consultations with the ward members and general public. “We can’t burden our residents with new taxes, particularly during the ongoing pandemic. In fact, we are discussing how we can reduce the existing tax rate to give them relief,” he said.

According to the SDMC sources, the standing committee is likely to continue with the recommendations of the third municipal valuation committee (MVC), which had asked to implement partial rollback of the property tax hike that was enforced in last financial year. “Besides, the education cess, which is presently being charged on the basis of the ratable value of the property, will now be taken like the income tax. All the recommendations of hike in property tax, made by the SDMC commissioner in his budget speech, are also expected to be rejected. Not only that, the standing committee may also suggest reducing the property tax,” said a senior SDMC official, who asked not to be named.

Jogiram Jain, chairman of the standing committee of North Delhi Municipal Corporation, also said that no new tax will be imposed this year. “The fact is that we can’t compensate our dues on the Delhi government, by putting tax burden on our residents. Our main focus will be on generating money from internal resources. No new tax will be levied this year,” he said.

Shyam Sunder Agarwal, the mayor of East Delhi Municipal Corporation (EDMC), said instead of imposing new taxes or recommending hike in the current rates, the EDMC will encourage its residents for one time settlement, with waiver from penalty and interest. “We can’t pressure our residents during the ongoing pandemic situation. The need of the hour is to provide them relief,” he said.

The principal opposition Aam Aadmi Party, however, termed the assurances by the three corporations as too little, too late, and it was the last ditch bid by the BJP to hold on to power. AAP leader and party’s MCD in-charge, Durgesh Pathak, also said that the BJP leaders in the fund-starved MCDs are promising moon to the voters. “After five years of failure on all fronts, they want to woo them with false promises. Have they returned the extra education cess charged from the residents? The voters have already made up their minds, and this budget will be the farewell budget of the BJP,” he said.

Senior Congress leader and Andrews Ganj councillor, Abhishek Dutt, said the decision of not imposing any new tax will not do any magic to the BJP’s prospects in the municipal elections. “They (the BJP leaders) know that their budget recommendations for the fiscal 2022-23 will prove a mere folly in just two months as the elections will be held in the second month of budget coming into effect,” he said.