Action plan to collect property tax

Aug 17, 2010 - Age Correspondent |

New Delhi

Facing a severe cash crunch, the MCD has decided to launch an action plan to ensure optimum collection of property tax. While a detailed action plan for improving the property-related revenue for the corporation has been suggested by the Municipal valuation committee, for the time being, the MCD will focus on recovering the arrears

from individuals or organisations having a pendency of more than Rs 5 lakh. Also, it would take action against those whose cheques have bounced and also recover dues from various government departments and other agencies like the Delhi Metro.
The action plan, which was discussed in a special meeting of the standing committee of the MCD on Monday, envisages sending notices to at last 4,186 defaulters who have a pending tax liability of Rs 5 lakh or more. The MCD hopes to recover Rs 712 crores from the exercise. Also, by getting the cheque defaulters to pay up, the corporation hopes to rake in Rs 19 crore.
From April 1, 2004 to March 31, 2010, MCD got 36,362 cheques which were dishonoured. In order to avoid such cases, the MCD is planning to accept the tax amount only through pay orders.
However, several councillors were not in favour of “pay order only” system.

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