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This Article is From Dec 10, 2009

MCD slaps tax on professionals earning over Rs 30,000 per month

New Delhi: During the budget presentation of the Municipal Corporation of Delhi (MCD) on Wednesday, a new 'professional tax' for those having an income of more than Rs 30,000 per month, five per cent hike in property tax rates and imposition of 20 per cent tax on "high-end non-residential" properties like high-class hotels, malls, AC gyms and clubs having swimming pools were proposed by Commissioner K S Mehra.

Though the Municipal Commissioner has proposed tax rate hikes and new taxes in the civic body's budget 2010-11, the ruling BJP in MCD does not appear to be keen on giving a nod to the same.

In fact, Mayor Kanwar Sain said the decision on tax proposals will be taken only after discussions within the party while making it clear that there is no chance of the proposed "professional tax" being levied on citizens.

"These are the budget proposals of the Commissioner. Whether to adopt them or not will be decided after we discuss the issue within the party. We will ensure that the citizens of Delhi are not burdened further," Sain said.

On property tax, he said the revenue should be increased by bringing more properties under the tax net rather than "burdening the people". He also said no professional tax will be levied. "We will take a decision after discussions."

The Opposition Congress also said it will oppose the tax proposals. "This is wrong. The tax rate hike will increase the burden on Delhiites," Leader of Opposition and Congress leader Jai Kishan Sharma said.

Asked about the new taxes in the civic body's budget, senior BJP leader V K Malhotra said the MCD Commissioner has proposed them and the party has nothing to do with it.

"These are only proposals. I do not think the new tax proposals will be approved," he said.

Former Delhi BJP chief Harshvardhan said the new tax proposals will not be implemented.

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