The Hindu : Congress puts new tax method under wraps

Online edition of India's National Newspaper
Monday, Dec 09, 2002

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Congress puts new tax method under wraps

By Our Staff Reporter

NEW DELHI DEC. 8. Apprehensive of the political outcome and its implications on the Assembly elections next year, senior leaders of the ruling Congress are in favour of "going slow'' with the process of implementing the Unit Area Method of Assessment of Property Tax in the Capital.

Now it is unlikely that inspector-raj and harassment to property owners would come to an end and be replaced by people-friendly Unit Area Method from next April as was promised by the Congress in its election manifesto early this year.

The delay by the Expert Committee on Property Tax, headed by former bureaucrat, K. Dharmarajan, in submitting its draft report could be seen in this context. Now only the draft of the proposed amendments in the Delhi Municipal Corporation Act, which is needed for the implementation of the new property tax system, is expected to be ready only by the end of this month.

``The issue is becoming complicated with every passing day. As of now no one knows, when the report would be ready,'' said a Committee member. "Even if its ready, no one knows when it would be implemented,'' he said.

Even the Leader of the House and Standing Committee member, Ram Babu Sharma, who till a few weeks ago was stating that the Unit Area method would be implemented from April 1, is not forthcoming on the issue. "The MCD will complete its task before April 1,'' is what he has to say now. After a decision is taken by the MCD, the issue has to be approved by the Delhi Government and then the Union Government. Parliament too would have to carry out the necessary amendments in the DMC Act. "This is a lengthy process. It now seems that the system could be implemented only after the Delhi Assembly elections are over,'' officials said.

In fact, a near unanimity has developed among the political leadership -- even among senior members of the Opposition BJP -- that the idea should be shelved for the time being. "This is not because they are against the Unit Area, but because they do not know the reaction of the people in some parts of the Capital,'' official said.

Property tax in some of the old colonies of the Capital like Karol Bagh and Greater Kailash, the Walled City, the resettlement colonies which so far have been exempted would increase under the new system. "No doubt inspector-raj and harassment would end and the property owners would not face any hassle in submitting their tax, but the increase in house tax in many of the colonies would jeopardise the party's chances in a number of Assembly segments. This we cannot afford to do so when the contest is going to be tough,'' said a senior Congress Councillor. It is estimated that about two dozen Assembly seats might be affected by Unit Area. "So we want to maintain the status quo and do nor want to take any risk in an election year,'' he added.

At the same time, the inspector's lobby is working overtime to ensure that the new system is not implemented. They are not only meeting the senior political leaders but have also warned the Councillors and politicians that they should not expect any financial assistance from them during elections.

However, the Congress would have to a lot of explanation to do to the people if the Unit Area Method is not implemented. In that case it would be charged with favouring "inspector-raj'' system.

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