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INDIA
This new fee, which will be collected alongside property tax, will effectively raise the overall annual costs for homeowners.
Delhi residents will soon face increased expenses as the Municipal Corporation of Delhi (MCD) plans to introduce a monthly user charge for door-to-door garbage collection, a service previously provided without fees. Seven years after the Solid Waste Management Rules, 2018 were implemented in the national capital, the MCD will begin collecting fees ranging from Rs 50 to Rs 200 per month from residential property owners. This new fee, which will be collected alongside property tax, will effectively raise the overall annual costs for homeowners.
How much will residents have to pay?
The user charge will be determined by the size of the property, with rates set as follows:
Properties up to 50 sq m will be charged Rs 50 per month, those between 50 and 200 sq m will be charged Rs 100 per month, and properties exceeding 200 sq m will be charged Rs 200 per month. Street vendors will be required to pay Rs 100 per month. Consequently, a typical homeowner can expect to pay an additional Rs 600 to Rs 2,400 annually, in addition to their property tax.
For commercial buildings
Businesses and institutions will face considerably higher charges:
Shops and eateries will be charged Rs 500 per year, guesthouses and dharamshalas will be charged Rs 2,000 per year, and restaurants with 50 or more seats will be charged Rs 3,000 per year. Hotels rated 3-star and above will be charged Rs 5,000 per year, while clinics and labs with 50 or more beds will be charged Rs 4,000 per year. Banks and coaching centers will be charged Rs 2,000 per year, and marriage halls will be charged Rs 5,000 per year. Small-scale industries that produce hazardous waste will be charged Rs 3,000 per year. The MCD anticipates that this initiative could generate up to Rs 150 crore in additional annual revenue.
The introduction of user charges has ignited a political dispute within the capital. The Aam Aadmi Party (AAP) has voiced strong criticism, labeling the decision as "arbitrary" and unauthorized by the House. Delhi Mayor Shelly Oberoi has reportedly raised concerns with the MCD Commissioner, challenging the legality of imposing user charges without the necessary council approval.
The Solid Waste Management Rules were initially notified by the Centre in 2016, and the Delhi government subsequently implemented them in January 2018. However, the three former municipal corporations, then under BJP control, had previously opposed the plan. Now, under a unified MCD, the implementation is proceeding, directly affecting a significant number of Delhi residents.
Meanwhile, on Monday, the Aam Aadmi Party (AAP) claimed that the Municipal Corporation of Delhi (MCD), acting on the instructions of its commissioner, has "unilaterally" started collecting a garbage user fee for solid waste management from the residents of the Capital.
Speaking at a press conference, AAP leader and mayor Mahesh Kumar Khichi said, “The commissioner bypassed the elected house and arbitrarily linked these charges to property tax, a move which will unfairly inflate the tax burden on residents already grappling with economic pressures. We are demanding an immediate rollback as this decision is anti-people and procedurally illegitimate."