North Delhi Municipal Corporation rejects MVC tax report
NEW DELHI: The cash-strapped North Delhi Municipal Corporation on Thursday rejected the third Municipal Valuation Committee’s (MVC) report proposing a hike in the commercial property tax rates. MVC is constituted every three years to revise property tax rates.
Leader of the House V P Pandey said, “We do not want to put any additional burden on the people Delhi and that is the reason why we have decided not to implement the MVC report.”
The report, if implemented, could help the civic body increase its internal revenue.
According to Sections 116 and 117 of the DMC Act, recommendations of the MVC are binding on the corporation and cannot be amended even by the commissioners.
“The recommendations of third MVC report, if implemented, will increase the rate of tax on commercial properties and upgrade their categories. For instance, if a commercial property is under C or D category, it will come under B or A category post implementation of the report,” said a senior North Corporation official.
Apart from this, the MVC report recommends bringing all industrial areas under the common category of Bthe unit area rate is Rs 500/sq m for this segment. Five-star hotels, multiplexes, petrol pumps, farmhouses in non-residential use, guest-houses, malls and all commercial properties measuring 1,500sq ft or more are to be brought under category A, for which the unit area rate is Rs 630/sq m. Three and four-star hotels are to be brought under category B.
Last year, the Aam Aadmi Party (AAP) government had made implementation of the MVC report one of the pre-requisites for releasing the north and east civic bodies share in Delhi’s taxes. The government reiterated this in February this year while granting a loan to the corporations in order to facilitate payment of employees’ salaries.