Fall in MCD prop.tax revenue dueto failure to streamline system:BJP

New Delhi, June 23 (UNI) The BJP today said the failure of the Congress government in the Municipal Corporation of Delhi to streamline its system for recovery of property tax, the main source of income, had led to a decrease of Rs 90 crore in tax recovery during the year 2005-2006 compared to the previous year despite an increase in the number of properties under the tax net.

''The decrease in revenue under the property tax head will not only adversely affect financial stability of the local administration, but also hamper progress of development works,''Leader of the House Subhash Arya told reporters here.

Mr Arya said during the year 2004-2005, the MCD recovered Rs 575.76 crore as property tax from 6.29 lakh properties while the recovery during the year 2005-2006 decreased to Rs 486.46 crores from 7.04 lakh properties.

The property tax revenue decreased despite the MCD spending money on advertisements and public announcements to create awareness among the property tax payers about the Unit area system of property tax assessment. Besides, the expenditure on citizen service bureaus had also increased.

''Decrease in property tax to the tune of nearly Rs 90 crore can bring MCD to bankruptcy since the civic body has to pay Rs 1400 crore as salaries to its officers and staff every year. It is really confusing as to what will be the financial position of the MCD and how development works will be carried out,''Mr Arya said.

Mr Arya suggested that property tax recovery should be streamlined so as to save the MCD from bankruptcy. He suggested that every property in Delhi should be digitized so that exact number of properties under the tax net could be estimated and their use factor could be known.

Stating that at least 70 per cent of properties in Delhi were still not under the property tax net, Mr Arya emphasised that more and more properties will have to be brought under the tax net.

''This will only be possible when officers and employees of the property tax department with honestly and with utmost devotion,''he said.

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