Compensate tax shortfall: Delhi civic agency to state government

New Delhi, June 10 (IANS) The Bharatiya Janata Party (BJP) Thursday asked the Delhi government to compensate the Municipal Corporation of Delhi (MCD) Rs.1,286 crore for the shortfall in property tax collections since the implementation of the unit area method.

The BJP controls the MCD while the Congress is in power in the state for the third consecutive term.

MCD house leader Subhash Arya of the BJP said the new method was introduced in 2004-05.

‘In subsequent years — from financial year 2005-06 to 2009-10 — MCD’s property tax collection fell to Rs.170.63 crore from Rs.290.29 crore,’ Arya said.

He said at the time of implementing the unit area method for assessment of property tax, it was felt that there might be a fall in its collection.

‘With a view to compensate the MCD, it was decided by the Delhi government to sanction grant of equivalent amounts. 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,’ the MCD leader said.

Under the unit area method, property tax is calculated on the basis of the estimated rental value of a property.

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