Delhi Lieutenant Governor launches scheme to reward RWAs for property tax compliance

Major changes in tax property policy, focus on waste management.
Delhi Lieutenant Governor VK Saxena. (Photo | Twitter, @fmnews_india)
Delhi Lieutenant Governor VK Saxena. (Photo | Twitter, @fmnews_india)

NEW DELHI: Lieutenant Governor (L-G) VK Saxena on Monday announced significant changes in the property tax policy of the Municipal Corporation of Delhi (MCD) after its unification. The L-G also launched a SAH-BHAGITA scheme to increase the involvement of the Residential Welfare Association (RWAs) in optimal tax collection and waste management systems.

Under this scheme, the RWAs will be incentivised for their efforts to improve efficiency and compliance in tax collection. The RWAs, on achieving 90% tax collection from the total number of properties in their societies, can recommend development work to the tune of 10% of the tax collection subject to a ceiling of Rs 1 lakh in their areas.

In addition to this, an added incentive of 5% of the tax paid shall be available if the colony concerned implements 100% waste segregation at source, compositing of the wet waste in the colony, re-cycles dry waste and hands over the remaining to the MCD or its authorized agencies.

“The new uniform policy addresses the long-pending rationalization of the property tax structure and places waste segregation, de-centralized processing, recycling and reuse as the axis for deciding upon additional rebates in the property tax matrix,” said Saxena.

Hoping that the initiative would increase citizen’s participation in society’s welfare, the L-G said, “The policy would encourage citizens to participate in working towards solid waste management.” The RWA groups, however, raised questions on the SAH-BHAGITA scheme. BS Vohra, president of East Delhi RWAs joint front said, “We are already arranging camps in localities for the collection of property tax.” He added, “Though we welcome the proposal of L-G, but can’t understand what development work can be done with a ceiling of Rs 1 lakh?”

Atul Goyal, president of RWAs Joint action said, “We welcome the initiative, but there are many missing links without which it won’t give desired results. The L-G should explain how the debt-ridden MCD will give its support.” The government earlier also launched schemes for enhancing citizen participation. The Bhagidari scheme, which included civic society in the decision-making process, was also introduced by the former CM Sheila Dikshit.

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