NDMC’s Property Tax Recovery Plan Faces Backlash
The New Delhi Municipal Council (NDMC) has escalated its efforts to recover property tax dues as the financial year 2024-25 draws to a close. The civic body has issued show-cause notices to 380 property tax defaulters, warning them of severe actions, including property attachment and account freezing, if their dues remain unsettled. This move comes as the NDMC intensifies its focus on tax recovery, especially targeting 3,200 taxpayers who have failed to make payments for three consecutive years.
The NDMC has set a 30-day deadline for defaulters to respond to the notice, with reminders to follow. The statement issued by the NDMC on Thursday made it clear that the Council will not hesitate to take coercive measures, including sealing properties, freezing accounts, or even attaching assets if there is no response within the given time frame. This comes as part of the civic body’s plan to collect Rs 1,150 crore in property taxes for the current financial year. While the NDMC’s recovery efforts may seem stringent, the move has met with resistance from the business community. The New Delhi Traders Association (NDTA) has expressed concerns over what it sees as excessive tax demands, which they argue are putting a strain on businesses.
The NDTA has called on the NDMC to streamline its tax collection process, emphasising that the current system is complicated and burdensome for small businesses, particularly those located within the NDMC’s jurisdiction. Traders are also raising concerns about disparities in property tax rates between areas under the NDMC’s control and those governed by the Municipal Corporation of Delhi (MCD). According to business owners, businesses in MCD areas pay taxes that are almost 20 times lower than those in NDMC areas. The NDTA has strongly advocated for a “one city, one tax” approach to ensure fairness and a level playing field for all businesses operating in Delhi.
NDMC has made efforts to facilitate tax payments by extending the working hours of tax collection centres. These centres, located at Palika Kendra and in key locations like Gole Market, RK Puram, and Sansad Marg, will remain open on weekends throughout March to accommodate taxpayers, with the exception of gazetted holidays. Meanwhile, the NDMC has already taken action against some defaulters, attaching 13 properties in Connaught Place and sealing shops and restaurants over the past few days due to non-payment of taxes. Despite these enforcement measures, the traders’ body remains hopeful that their concerns will be addressed, especially with political support from local representatives.
The traders believe that with BJP leaders in key positions within the NDMC, their demands for a more equitable and simplified tax system may be taken seriously. The NDTA has reportedly engaged with local MPs and MLAs to advocate for a revised taxation framework that would alleviate the financial burden on businesses and promote a more conducive environment for trade and commerce in the city. This ongoing dispute highlights the broader challenges faced by the NDMC as it seeks to balance tax recovery with the need to support a thriving business community.
The NDTA’s push for reform underscores the tensions between the civic body’s revenue goals and the operational realities of businesses that are already grappling with high operating costs and other financial pressures. As the matter continues to evolve, both the NDMC and the traders will be closely watching the political and legal landscape to see how these issues are resolved.
