After the massive debacle in Punjab and Goa Assembly elections, Kejriwal made the big announcement of doing away with house tax ahead of the MCD election scheduled for April 23.
The big poll promise made by Delhi Chief Minister Arvind Kejriwal of abolishing house tax if Aam Aadmi Party (AAP) is voted to power in the municipal corporation elections contradicts his earlier stand on the subject. Internal communications accessed by DNA show that Kejriwal government has been directing MCD for last two years to increase house tax and clampdown on those not paying it. The AAP government has also maintained that there should be no rebate on houses taxes.
After the massive debacle in Punjab and Goa Assembly elections, Kejriwal made the big announcement of doing away with house tax ahead of the MCD election scheduled for April 23.
Residential house tax is one of the important sources of revenue for civic bodies. The three MCDs- North, South and East target approximately Rs 1,400 crore annually through house and commercial tax.
The documents accessed by DNA show that AAP-led Delhi government has written twice to municipal corporations strictly warning them against giving any tax rebates or concessions.
The first direction was issued by the AAP government on June 11, 2015 and another on February 4, 2016. The Finance Department of Delhi government wrote to the Urban Development Department dealing with MCD.
The letter was marked to the Director Local Bodies, the secretary to Minister Urban Development of Delhi government and other government officers.
The letter said: "The Municipal Corporations will not provide any concession or rebates in taxes, fees, charges levied by them."
The AAP government further stated, "Increase revenue through improved property tax coverage, bring left out properties under property tax net, increase revenue from advertisements, parking, remunerative projects etc."
This is just contrary to what Kejriwal announced two days ago to waive off the House Tax. Before giving single penny to cash crunched corporations, the AAP government had ensured that they follow their diktats.
Further, the state government also directed the corporations to reassess all its schemes and not increase the scope of scheme and its liability.
"We will abolish the residential house tax and waive off tax arrears of MCD if AAP comes to power...the party is preparing its detailed manifesto which will be released soon," Kejriwal said during a press conference on Saturday. The Delhi CM also said that the house tax has become a major source of corruption and if voted to power in MCD, AAP will end it.
Kejriwal also said that despite ending the house tax, AAP will make all three MCDs in Delhi profit making bodies which presently are under huge debts. While he promised to scrap the house tax, Kejriwal added that the commercial tax will continue to be in place.
"We are making this promise with full responsibility and after thorough study and planning," he said.
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