NEW DELHI: In an attempt to incentivize tax collections and increase its revenues, East Delhi Municipal Corporation (EDMC) will reserve 5% of property taxes and license fee collected from each ward to its local area development fund (LAD).
An official from EDMC reported that cap of Rs 50 lakh has been fixed on this. The tax and fee collection to be considered under this scheme include property tax, general trade license, veterinary license and factory license. The civic body is divided into 64 municipal wards and is further split into two administrative zones – Shahadra North and Shahadra South. “Councilor of the concerned area must ensure that the development work is necessary and is not postponed. Payments will be released depending on the availability of funds,” said Vikas Anand, Municipal Commissioner, EDMC.
Shyam Sunder Aggarwal, Mayor, EDMC said that the civic body has not been able to provide any LAD funds due to financial constraints, except for one annual cycle in the past five years, when councilors were given Rs 30 lakh each.