MCG mulls new scheme for commercial property tax collection

As industries continue to be reluctant in paying property tax to the Municipal Corporation of Gurugram (MCG), the civic body is drafting a new scheme to encourage industrialists clear their dues.

As per the new scheme, industries will pay property tax to the MCG and the civic body will bear the maintenance charge that is currently being paid by the industries to the Haryana State Industrial Infrastructure Development Corporation (HSSIDC).

The payment of commercial property tax has been a long standing issue between the MCG and the industries since the civic body’s formation in 2008.

As per sources, since there has been a 68% decline in property tax collection in 2016, officials have been formulating new schemes to increase collection prior to the culmination of the financial year.

The new draft is being formulated by MCG commissioner V Umashankar.

“Despite being offering rebates for property tax payment on several occasions, industries have not cleared their dues. Hence, a new draft is being formulated to ensure that industries do not have to pay any other taxes or charges to other civic bodies and simply make a onetime payment to the MCG,” Umashankar said.

The introduction of such a scheme, though, has evoked reservations from industrialists and HSSIDC officials.

An HSSIDC official said they will examine the findings of the scheme upon its completion and accordingly, give their feedback to the MCG.

Industrialists also claimed that the draft was in a primary stage and they were not pinning their hopes on it.

“Firstly, the MCG needs to identify commercial properties and reassess its survey. Then, we will look at the property tax rates listed under the new draft. The same could be greater than the maintenance charges currently being paid to the HSSIDC and will be boycotted,” Raj Singla, president, chamber of Industry in Udyog Vihar, said.

Owing to demonetisation and introduction of online payment of property tax, the MCG was expecting a boost in collection. However, it collected only Rs 121 crore as property tax till December 31 against Rs 387 crore collected in 2015.