MCD refutes reports of property tax exemption and urges timely payments amid financial crisis

NEW DELHI: The Municipal Corporation of Delhi (MCD) has dismissed reports suggesting an exemption from paying property tax, saying all property owners and occupiers are required to do it as per existing laws.

In an official statement issued on Friday, the civic body urged residents to disregard misleading information circulating on various social media platforms.

Amid rising financial challenges including pending municipal employee salaries and contractor dues, the MCD emphasised that property tax remains a critical revenue source, contributing nearly one-fourth of its total earnings. “Property tax remains payable by all occupiers and owners, and no exemption or relaxation has been granted,” it said in the statement.

The clarification follows multiple inquiries regarding potential waivers. The MCD reiterated that tax structures for the financial year 2024-25 were finalized in February last year, while levies for for 2025-26 were determined in a meeting on February 13, 2025.

With outstanding dues exceeding Rs 14,000 crore, the civic body stressed the importance of financial stability for maintaining essential civic services such as sanitation, road maintenance, and drainage systems.

The MCD has urged all property owners and occupiers to file their property tax returns on a self-assessment basis and complete their payments by March 31, 2025 to avoid penalties.

Earlier this week, on Tuesday, a House Meeting of the MCD saw a heated exchange between the Aam Aadmi Party (AAP) and the BJP over legality of the session and AAP’s move to introduce two key proposals -- one advocating for large-scale property tax waivers and the other for the regularisation of thousands of contractual staff.

After the House session, AAP Mayor Mahesh Kumar Khinchi claimed in a press conference that the House has passed a proposal to regularise all contractual workers in MCD.

He asserted that more than 70 AAP councillors were present in the House, ensuring the required quorum for the meeting. He further said that the session started on time but, like previous occasions, was once again disrupted by chaos.

However, BJP leaders challenged the mayor’s claim arguing that the proposals had not been passed through the proper legal process.

“The official procedure to pass a resolution was not followed. The mayor’s claim is baseless,” BJP Leader of Opposition Raja Iqbal Singh said.

Later in the evening, Singh wrote to MCD Commissioner Ashwani Kumar, urging him to declare the day’s proceedings “invalid and abandoned.”