Delhi LG announces major changes in property tax policy

Delhi Lt. Governor V K Saxena, on Monday, announced major policy changes in the property tax structure of the Municipal Corporation of Delhi (MCD) and launched SAH-BHAGITA, a scheme to make RWAs partners in optimal tax collection and waste management ecosystem.
While the new uniform policy addresses long-pending rationalisation of the property tax structure, it also places waste segregation, decentralized processing, recycling and reuse as the axis for deciding upon additional rebate/concessions in the property tax matrix. The policy comes with a new initiative called SAH-BHAGITA which details property tax collection and solid waste management including development work through community participation.
SAH-BHAGITA aims at improving efficiency and compliance in tax collection by incentivising resident welfare associations (RWA) which, on achieving 90% tax collection from total number of properties in their societies/colonies, can recommend development work to the tune of 10% of the tax collection subject to a ceiling of Rs 1 lakh in their areas.
In addition, an incentive of 5% of the tax paid shall be available if the colony concerned implements 100% waste segregation at source, compositing of the wet waste in the colony, recycling of the re-cycle able dry waste and hands over the remaining dry waste to the MCD or its authorized agencies.
The tax policy brings in consistency and uniformity in different approaches hitherto being adopted by the erstwhile three Municipal Corporations.
The LG has expressed the hope that these long-awaited initiatives will bring about the much desired community partnership and ensure that citizens become stakeholders in the MCD. These policy initiatives will ensure better delivery of services to the residents of Delhi and encourage people’s participation in addressing the problem of solid waste management while also enhancing the revenues of the Municipal Corporation.