MCD makes User Charge Optional for Property Tax Payments

• 02 Jun 2025
• 2099 Views

The Municipal Corporation of Delhi (MCD) has updated its property tax portal to make the user charge, a fee for garbage collection, optional rather than a mandatory requirement. This step taken up by MCD addresses widespread confusion that had discouraged many from paying their taxes early. It ensures that taxpayers can still claim the 10% rebate on advance payments valid until June 30.

The user charge had been added to tax bills starting April 1, as part of solid waste management rules. Residential properties were levied a base fee of ₹600, while commercial units faced much steeper rates. The charge drew strong criticism from the public, with many residents arguing they already pay private vendors for waste collection. Other residents put forth the question as to why only 13 lakh registered taxpayers were being billed, despite over 35 lakh households generating waste daily. GST's inclusion on the total amount only added to the financial burden.

Responding to public outcry, the MCD passed a private resolution in the House on May 21 to defer the user charge and reconsider how it should be implemented. The resolution also urged that the fee be separated from the main property tax bill to simplify payments. Several Resident Welfare Associations (RWAs), especially from zero-waste colonies or those actively working with the MCD on waste segregation, backed this proposal. They argued that penalising proactive communities while letting others off the hook was unjust.

Following this, the MCD modified its online portal to allow users to opt out of the garbage fee with a single click. An MCD official confirmed that these updates were made in line with the House’s decision and any charges already paid would be adjusted in future billing cycles. A final decision on permanently separating the charge from the property tax bill is pending. The commissioner is currently reviewing the matter for further discussion in the House.

In parallel, the MCD’s general amnesty scheme for property tax defaulters launched on June 1. This one-time offer lets taxpayers settle outstanding dues from the past five years along with the current year’s bill. Once paid, all previous liabilities dating back to 2004 will be waived. Taxpayers who take advantage of the scheme will also receive a No Objection Certificate (NOC) confirming the clearance of all dues.

Source: Times of India