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Wednesday, September 23, 1998

Property tax proposal clears one more hurdle

EXPRESS NEWS SERVICE  
NEW DELHI, September 22: Municipal Corporation of Delhi's (MCD) high-powered committee on property tax today accepted all recommendations regarding exemption on property tax made by a special sub-committee. The recommendations have been sent to the Standing Committee for approval.

Two of the six members of the high-powered committee, however, boycotted the meeting in protest against the recommendations. Moreover, Mahendra Yadav, a member of the especially constituted sub-committee said that the concessions had been announced to mislead the people.

The sub-committee had recommended 100-per-cent house-tax exemption for war widows, gallantry-award winners, war disabled, allottees of 26 square metre plots, janata flats, self-occupied residential properties and properties in urbanised villages. It has also recommended substantial relief to owners of 50 sqm plots, LIG flats, flats with a covered area that is not more than 75 sqm, apartments in group housing societies and property of ex-servicemen. This will be apart from the 20-per-cent rebate given to those who deposit their tax before the due date.

Leader of the Opposition Dr Narendra Nath expressed his resentment on the fact that Standing Committee Chairman Shanti Desai had announced the recommendations even before they were placed for consideration before the high-powered committee. He pointed out that the members were neither informed nor consulted before the report was made public. Describing his behaviour as undemocratic and unconstitutional, he said that Desai had done it just to get more votes.

Mahendra Yadav, a member of the sub-committee along with Ved Prakash Gupta and Vijendra Gupta, alleged that Desai had decided to give these exemptions in complete disregard to the recommendations made by them. He said that the sub-committee had recommended that relief should be given to allottees with plots of 100 sqm and those with power of attorneys. He added that their report had recommended 50-per-cent rebate for group housing societies, whereas Desai had announced 35 per cent.

Yadav added that their report had not made any mention about rebate in urbanised villages as residents of those areas had not paid any tax at all. He also said that the report had not mentioned anything about relief for plot owners with 26 sqm land.

At the meeting which was attended by all officials, Desai said they were facing some `technical problems' in implementing the recommendations. He said that they had to consider the ramifications of LG's instructions on the Vijay Kumar Malhotra report on urbanised villages and also take into account the loss that MCD would face once it gets implemented. He instructed the officials present there to discuss the matter with the LG.

Desai disclosed that the MCD would have to face an additional annual loss of Rs 30 crore if the recommendations are implemented. However, officials of the Property Tax department said that the MCD would have to face losses worth Rs 42-50 crore annually.

Desai added that a special meeting of the Standing Committee has been convened on September 28 for passing the proposal. Desai said that if the recommendations can be brought into effect before September 30, then those who have already deposited their tax would be able to avail the benefits.

Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.


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