The Municipal Corporation of Delhi (MCD) has decided to roll back the recently imposed waste collection user charge and has introduced a House Tax Amnesty Scheme, offering relief to lakhs of residents across the capital.
The developments come after a sharp backlash over increased property tax bills following the inclusion of a solid waste management fee during the tax collection process in April this year.The user charge, which was implemented as an additional component of property tax, triggered protests from residents and housing welfare groups, many of whom argued that the civic services did not justify the added financial burden. The charges were introduced under the Central government’s Solid Waste Management Bye-Laws, 2017, which had been notified by the Delhi government back in 2018. Despite being officially in force for over seven years, the fee had not been collected until now.
Civic officials said the rationale for imposing the charge was to align municipal finances with the national waste management framework and increase funding for sanitation services. However, the rollout was criticised for its abrupt implementation and lack of consultation with the public or elected representatives. Particularly in lower-income and unauthorised colonies, residents expressed frustration over having to pay extra for services they claimed were either missing or insufficient.
Amid mounting public pressure and political friction, the MCD announced that it would suspend the waste collection user charge. The withdrawal was made official with plans to introduce a private member resolution in the municipal house, which will also ensure that no such charge is levied in the future without comprehensive stakeholder discussions. A senior civic official confirmed that taxpayers who already paid the user charge in April would receive adjustments in their forthcoming bills or direct refunds.In a move expected to benefit a wide swathe of the city’s homeowners and tenants, the MCD simultaneously unveiled a House Tax Amnesty Scheme. Under this scheme, property owners will only be required to pay the base property tax for the past five years, with full waivers on any accrued interest or penalties. Upon payment, property owners will receive a No Objection Certificate (NOC), clearing any pending disputes with the municipal body.
The amnesty programme is expected to run until March 2026 and applies to properties across various categories, including regularised colonies, unauthorised constructions, and commercial establishments. Officials estimate that over 2.7 million out of Delhi’s 4 million properties remain non-compliant with property tax norms. The MCD is banking on this scheme to encourage higher compliance and boost its own-source revenue, which has consistently fallen short of targets in recent years.Last year, the municipal corporation managed to collect just over ₹2,160 crore in property taxes, far below its target of ₹4,000 crore. A similar amnesty initiative launched in 2022 had led to the recovery of more than ₹2,400 crore, offering a glimpse of the potential financial upside of encouraging voluntary compliance through waivers and simplified rules.
Officials also clarified that the surcharge levy introduced in April had not been preceded by a separate notification or public feedback process, which contributed to the backlash. The civic body now plans to form a high-level committee to develop a legal and administrative framework to evaluate any such proposals in the future. A clear policy and transparency in civic charges, they argued, are essential for building public trust and sustaining municipal services.The issue also sparked a political tug-of-war between the two major parties in the MCD and Delhi government. While one camp blamed the decision on directives from the central government and the previous municipal leadership, others argued that the Aam Aadmi Party’s earlier recommendations to waive taxes for properties up to 500 square yards were overruled by the commissioner, who allegedly acted without appropriate oversight.
Opposition leaders criticised the imposition of the fee, pointing out that many residents already pay out of pocket to private waste collectors, particularly in areas where MCD sanitation services remain patchy or irregular. They questioned the logic of an additional municipal levy when basic services are either outsourced or absent.In contrast, civic officials defending the initial decision said the charge was in line with national policy objectives to strengthen urban waste management and ensure that polluters pay for their waste generation. However, they conceded that policy execution without adequate groundwork undermined its impact and provoked avoidable resistance.
With the rollback and the amnesty scheme in motion, Delhi’s municipal administration is now working to rebuild trust with its residents. The renewed focus is on improving transparency, communicating policy changes clearly, and tailoring civic taxation in a manner that supports sustainable and equitable urban living.
At a time when Indian cities are striving to become cleaner, greener, and more citizen-friendly, this course correction by the MCD reflects an evolving understanding that urban governance must be both consultative and compassionate. If implemented well, the amnesty initiative could serve as a blueprint for other cities looking to enhance revenue without alienating residents—especially those living on the margins of urban development.
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