Delhi CM Arvind Kejriwal had announced that AAP will do away with the property tax collection from residential units and waive dues of all defaulters if it wins the civic elections.
Can MCD abolish this tax.
Well, they cannot abolish the house tax, but they can chose not to collect it, this is clearly a election jumla by Kejriwal to say that he will abolish but in real sense he cannot abolish. However Tejinder Bagga , Delhi BJP spokesperson claims that the house tax is mandatory.
— Tajinder Pal S Bagga (@TajinderBagga) March 25, 2017
But as per the 113A MCD act it says
Levy of taxes
113. Taxes to be imposed by the Corporation under this Act
(1) The Corporation shall, for the purposes of this Act, levy the following taxes, namely:—
(a) property taxes;
which means it is not a mandatory tax collection, and if MCD choses not to collect they can do so. So here it clearly says the tax is not mandatory same is said by AAP
No, sir, MCD Act grants the authority to collect house tax, but it's upto MCD to use this authority as it sees fit. No amendment required. https://t.co/ysiskz0faJ
— Krishan Partap Singh (@RaisinaSeries) March 25, 2017
Let us check out some of the other media reports on this, some in favor of Kejrwal some in favor of BJP, this article here says the tax cannot be waived,however this is just a opinion no such clause is there in the MCD act as per the MCD act document
Clearly As per records ,house tax can be waived and it can be done by MCD but then there are bad implications of getting away with such tax which is well explained in this article below. Certainly Kejriwal can remove House tax but that will make Delhi like Karachi not London