NEW DELHI: South Delhi Municipal Corporation (SDMC) has decided to roll back all previously declared commercial property tax hikes.
According to an official, a loss of INR 80-100 crores in revenue collection is expected out of this move. SDMC, which is already facing a financial crisis, has not been able to pay its field workers in recent times. This move will benefit big commercial complexes, malls, industries, clubs, banquet halls and private schools.
With the roll back in place, SDMC would now have to refund taxes paid at hiked rates by businesses. Kamaljeet Sehrawat, the leader of the house informed that the heavy burden on the taxpayers was not something that had been foreseen.
Since 2012, there had been an ongoing debate over the rate revision process which finally got approval with a certain condition that there would be no increment on residential property tax. These recommendations were approved by the corporation during the approval of budget estimates for 2019-20 in February 2019.
According to Delhi Municipal Corporation Act, there needs to be a change in the MVC committee every three years in order to change the factors based on which the property tax is calculated but in Delhi, the commission rates that are in place have been there since 2004.
The rollback came as a shock to even members who were part of the approval process. This unprecedented move, according to Sehrawat, is for the benefit of the people (owners of non-residential rented commercial properties) as they receive relaxation from exorbitant tax rates.
Leaders from the opposition party spoke on the issue. Congress councillor from Andrews Ganj, Abhishek Dutt claimed that the roll back was a political move with the government’s eye on the upcoming assembly elections. Although in support of the rollback, Abhishek Dutt claimed that the manner and speed in which the whole process took place was questionable.