Agencies
New Delhi, Nov 19: The East Delhi Municipal Corporation on Friday said it will launch a scheme to allocate a part of total property tax and licence fees, collected from a ward, towards the local councillor development fund.
In a statement, the civic body said the move seeks to enhance the accountability of the municipal agency towards its residents, to increase the tax base and motivate people as well as elected councillors to work for development.
The EDMC has decided to launch a scheme to allocate a part of the total property tax and licence fees collected from a ward towards the Local Councillor Area Development fund for use in the ward or origin of tax, it said.
Under this scheme, five percent of the total collection of the property tax and license fees (as received by the EDMC from the issuance of general trade license, health trade license, veterinary trade license and factory license) of a particular ward will be released towards the local councillor’s local area development fund, subject to maximum disbursal of Rs 50 lakh in a ward, the EDMC said.
Further, councillor-wise record of the development work of the area should be maintained for the expected results for this scheme, and it needs to be ensured that the works being undertaken under this fund are “necessary for the development of the ward, and it cannot be postponed,” the statement said.
While undertaking the development work in the ward, it shall be ensured that financial discipline and financial prudence have been duly followed, it added.
In view of the precarious financial position of the EDMC, it is felt that this scheme will help in increasing the tax compliance and better tax collection, as the residents are assured that a part of the tax and fees they are paying to the municipal agency is being invested in infrastructure development within their locality, the civic body said.
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