MCD mulling tax collection from illegal colonies of Delhi

NEW DELHI: With an aim to improve its financial health, the Municipal Corporation of Delhi (MCD) is contemplating to collect tax from major commercial establishments located in unauthorised colony areas of the national capital, official sources said on Thursday. According to the sources, there is hardly any tax collection from unauthorised colony areas so the civic body is considering to tap big commercial properties in such localities and realise tax from them.

They said any formal proposal in this connection is yet to be moved but the plan is under discussion at MCD meetings on financial issues. An MCD source said the civic body is planning to widen its tax net to boost revenue generation under which it is also likely to review its property tax collection system in a way that it does not put burden on people.

He said currently the property tax collection from unauthorised colony areas is almost negligible despite the fact that the civic body provides basic amenities like sanitation in these areas. He said that the move will expectedly give a much needed boost to cash-strapped MCD, which had been facing issues in paying salaries of its employees.