Thaindian News

New Delhi, Dec 8 (IANS) The Municipal Corporation of Delhi (MCD) Wednesday passed its Rs.6,346 crore budget for 2011-12 and proposed to increase property taxes by five percent across all categories, a move rejected by the opposition Bharatiya Janata Party (BJP).

Presenting the revised budget estimates for 2010-2011 and the budget estimates for 2011-2012, MCD Commissioner K.S Mehra said a major part of the money would be spent on green initiatives, roads, parking projects, education and hospital improvement.

Mehra noted that the corporation has a debt of Rs.2,867 crore and said there was urgent need for improving financial management and increasing revenue.

“The property tax rates are proposed to be increased by five per cent uniformly in all categories except Airport Authority of India properties, non-residential farmhouses and special non-residential properties,” he said.

He also said the rebate on timely payment of tax is proposed to be reduced to 10 percent from 15 percent and that there will be no additional rebate on properties upto covered area of 100 sq m, co-operative group housing societies and aided schools.

Soon after the budget speech by Mehra, BJP leader and MCD Standing Committee Chairman Yogender Chandolia said: “The proposal for tax hike is outrightly rejected.”

However, senior MCD officials said this could only be taken as an informal rejection and the proposal should go to the key panel for formal rejection or acceptance.

Chandolia later told reporters: “The proposal to hike tax will not be discussed at the standing committee, but members can give their suggestions on other issues.”

However, he said the proposal to decrease tax rebate will be debated.