An additional 5% rebate will be available if the colony implements 100% waste segregation at source. (Express file photo, representational)The MCD’s new property tax structure will incentivise group housing societies that carry out waste segregation at source and recycling. According to officials, the corporation will provide a 10 per cent rebate to those group housing societies in which 90 per cent residents pay tax.
Besides, an additional 5 per cent rebate will be available if the colony implements 100 per cent waste segregation at source, composting of wet waste in the colony, re-cycling of recyclable dry waste and handing over remaining dry waste to the MCD or its authorised agencies.
Fresh push
The new policy incentivises waste segregation, de-centralised processing, recycling and reuse in order to get rebate and concessions in property tax. Through this, the MCD is making a renewed push for waste segregation, which has seen several hits and misses in the past.
L-G V K Saxena Monday announced the policy changes in the tax structure, called the Sah-Bhagita scheme, which will make RWAs partners in tax collection and waste management.
Subscriber Only Stories
“The scheme aims at improving efficiency and compliance in tax collection by incentivising RWAs which, on achieving 90 per cent tax collection from total number of properties in their societies and colonies, can recommend development work to the tune of 10 per cent of the tax collection subject to a ceiling of Rs 1 lakh in their areas,” said a senior official.
To bring uniformity, the civic agency will soon announce implementation of new rates which will be applicable from July 16, 2022. “With this, no additional demand will be levied on property taxpayers who have already paid, provided they have not suppressed payable amount of tax,” said the official.
The L-G had last month advised that all properties within the city limits, commercial as well as residential, be brought under the tax net so that MCD’s income increases, and it is able to provide better services. Presently, most of the houses in the unauthorised colonies, village areas do not pay property taxes.
Properties are divided into eight categories for tax collection in the capital — A, B, C, D, E, F, G and H — depending on their location.
The MCD will collect 12 per cent of annual value for residential colonies of A & B category; 11 per cent for C, D, E categories; and 7 per cent for E, F, G categories, said a senior official. Annual value is calculated based on the size of the area and its area category.
For non-residential properties up to 1,500 sq ft, property tax rate has been fixed at 20 per cent for categories A, B, C, D, E and 15 per cent for E, F, G. Those over 1,500 sq ft have to pay 20 per cent. For industrial properties, tax has been fixed at a uniform rate of 15 per cent.
These rates are likely to be finalised in a day or two, said a senior official of the MCD.
- The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
