The Municipal Corporation of Delhi (MCD) recently released concerning figures regarding property tax collection during the financial year 2023-24. According to the report, there was a significant decrease in the amount collected compared to the previous fiscal year. This decline has raised concerns about the revenue generation for the city’s civic body.
Figures Show a Significant Decline: In the fiscal year 2022-23, the MCD managed to collect a substantial sum of Rs 24.17 billion in property taxes. However, in 2023-24, the collection dwindled to Rs 21.37 billion, marking a staggering decrease of Rs 2.80 billion. These figures fell remarkably short of the target set at Rs 35 billion in the 2023-24 budget. Moreover, not only did the overall collection decrease, but there was also a decline in the number of taxpayers. In 2022-23, the MCD reported 1.3 million taxpayers, whereas in 2023-24, this number dropped to 12.58 lakh. This stark decrease is a cause for concern as property tax is a significant revenue source for the civic body.
Absence of Amnesty Scheme Blamed for Decline: Officials from the MCD attribute the decline in property tax collection to the absence of an amnesty scheme in the current financial year. The previous year, during 2022-23, the MCD introduced the Samriddhi scheme. This scheme allowed the waiver of all penalties on the payment of the principal amount for residential and commercial properties, resulting in an additional collection of Rs 4 billion. The introduction of the amnesty scheme encouraged many individuals to come forward and settle their outstanding dues. However, with no such scheme implemented in 2023-24, taxpayers are refraining from payments, waiting for a more favorable opportunity. The lack of these amnesty provisions has contributed to the decrease in both the collection figures and the number of taxpayers.
MCD’s Efforts to Boost Collection :The MCD has reported undertaking various efforts to bolster property tax collection. Notices are being sent out to major defaulters, expanding the tax base, and ensuring accurate property assessments based on documented evidence such as electricity bills. These measures aim to identify those evading taxes and encourage timely payments.
Political Implications of the Decrease: The decreased property tax collection figures have not only been a disappointment to the MCD but have raised political concerns as well. Raja Iqbal Singh, the leader of the opposition and a BJP councilor, expressed his skepticism. Singh highlighted that earlier, the Mayor and the Aam Aadmi Party (AAP) had claimed that the number of taxpayers had increased during the initial quarter. However, the real figures defy these claims and cast doubts on the efforts of the party. Singh went on to suggest that corruption could be a significant factor contributing to the decrease in collection. He argued that people’s faith in the party is diminishing, and it is crucial to address these concerns to restore public trust.
Conclusion: The decline in property tax collection has posed a significant setback for the Municipal Corporation of Delhi. The absence of an amnesty scheme this year has resulted in a noteworthy decrease in both the amount collected and the number of taxpayers. However, the MCD remains committed to finding solutions and boosting collection through various measures. The political implications of these figures underline the importance of addressing concerns related to corruption and ensuring the public’s trust in the administration.
