The Municipal Corporation of Delhi (MCD) on Wednesday proposed increase in property tax and introduced a new congestion tax, which will be applied on vehicles in congested areas.
Presenting the budget for 2012-13, MCD Commissioner K.S. Mehra also proposed increase in parking charges, street parking charges and property tax besides introducing new charges like congestion charges and conservancy charges.
The congestion charge will be introduced in commercial areas of Karol Bagh, Paharganj, and city zones of MCD to notify road stretches for imposing charges.
“Residents and property owners of that particular area will be exempted and given passes. Charges would be applicable to those who bring their vehicles into these areas from 8 am to 9 pm. The BJP-led MCD expects an additional revenue of `520 crores through new taxation proposals, Mr Mehra said.
The MCD plans to generate an extra `180 crores through street parking charges while it expects the proposed 3-5 per cent increase in property tax to fetch another `150 crores.
While residential areas may see an increase of 3-4 per cent in property tax, industrial areas will witness 3-5 per cent hike. Farmhouses may have to pay five per cent extra in this regard. A sum of `100 crores is what the civic body expects to collect through conservancy charge of `5,000 to be collected from those who organise social, religious, political and other functions which generate garbage while parking fee hike is expected to fetch `40 crores and congestion charge `50 crores.
However, wary of the negative impact these can have on its prospects in the municipal elections next year, the BJP said the proposals will not be implemented.