The demonetisation of Rs 500 and Rs 1,000 notes has come as a boon for the cash-strapped East Delhi Municipal Corporation (EDMC).
EDMC mayor Satya Sharma on November 22 claimed that the corporation had collected about Rs 10 crore as property tax and conversion charges in the past two weeks.
"On November 10, we announced that the corporation would be accepting property tax payments in the abolished notes," said Mohanjeet Singh, commissioner, EDMC. "People started paying house tax and conversion charges from the very next day. In the first five days, collections were to the tune of Rs 1.52 crore. Property tax collections every year should amount to about Rs 70 crore, but we manage to collect only Rs 20-25 crore. This year, however, we are expecting it to go up to Rs 35-40 crore. It is huge!"
Jitender Chaudhari, chairman of the EDMC standing committee, said, "Many who were evading property taxes and conversion charges are now paying up. East Delhi residents can pay their house tax and conversion charges by February 24, 2017, without any interest. Banned currency, however, will only be accepted till December 30."
Mayor Sharma said, "Those paying taxes by February 28, 2017, will not have to pay anything extra but after that they will be charged 50 per cent extra as penalty."
The BJP-ruled civic body seems to be hurrying in collecting tax, as its budget for the next financial year is likely to be preponed by a month. Generally, the corporation bodies present their budget between March and April, but due to MCD polls, the next financial budget is expected to be presented by the end of February or the first week of March.