NEW DELHI: In a fresh bout of tussle between the political and executive wings of the AAP-ruled MCD, the civic agency has alleged a drop in revenue due to the property tax waiver announcement.
This revelation by the civic body comes just days before the mayoral elections are slated, where the BJP is expected to emerge victorious.
Property tax collection, which accounts for nearly one-fourth of MCD internal revenue, saw a decline in following reports of exemptions and rebates announced on February 25. According to official data, the Municipal Corporation of Delhi (MCD) collected Rs 2,163.57 crore in property tax during FY 2024-25, slightly up from Rs 2,132.89 crore collected in the previous fiscal.
Recently, there have been reports regarding 100% exemption to properties below 100 sq yards and 50% rebate to properties between 100-500 sq yards on the basis of the Resolution on February 25, 2025.
“The collection of Property Tax in 2024-25 is Rs 2,132.89 crore as compared to Rs 2,163.57 crore in the previous year. However, the collection of tax from the date when media reports were made till the close of FY was Rs 193.28 crore as compared to tax collection to the tune of Rs 367.16 crore during the corresponding period of previous year. This shows a drop in tax occurred due to misgivings generated due to the said announcement,” an MCD statement said.
The MCD further clarified that as of February 24, prior to the announcement made in the House, tax collection figures are Rs 1,932.51 crore as compared to Rs 1,773.81 crore in the corresponding period of the previous year .This reflects an increase of Rs 158.7 crore with 8.95 % increase on date-to-date basis .This upward trend in tax collection indicates that in absence of news of exemption, the momentum would have continued further.
“These announcements led to widespread confusion among taxpayers, especially during the fag end of FY 2024–25. Numerous queries were received from taxpayers whether their properties were eligible for exemption or not. Although the MCD issued clarifications through various newspapers, the communication did not adequately reach or reassure the public,” the civic body statement read.
“As a result, the MCD experienced a notable drop in both the number of taxpayers and overall tax collection. It is essential to have good financial health of the Corporation without which service delivery in terms of sanitation, maintenance of streets/roads, storm water drainage and streetlights etc. are going to get impacted. It is essential that the general public pays property tax and other taxes for ensuring delivery of basic civic services,” the statement added.