MCD seeks ₹900cr per year if toll taxes are not collected

The Municipal Corporation of Delhi (MCD) has written to the Delhi government, suggesting that it provide a financial assistance of ₹900 crore annually if toll tax collection at the Capital’s border points is to be stopped in order to ease congestion, senior civic officials said.

- Paras Singh

The corporation has proposed two alternatives to offset the potential revenue loss: either an annual payment of ₹900 crore from the government, with a 3-4% inflation-linked increase every year, or a 1% hike in transfer duty on the sale and purchase of immovable property in Delhi.

The proposal comes in the wake of Union road transport and highways minister Nitin Gadkari’s appeal in June to remove MCD-operated toll booths at the city's borders, which he said cause snarls, delays, and wasted man-hours.