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New Delhi: Foreign missions may cease to enjoy tax immunity if a proposal sent by the capital's civic body gets the approval of the federal government.
The New Delhi Municipal Council (NDMC) has written to the Foreign Ministry seeking its sanction to bring foreign missions under the tax net.
An NDMC spokesman said the proposal was to levy taxes on services rendered on a reciprocal basis.
Property Tax
"Indian missions in several countries have to pay taxes. We have written to the Ministry of External Affairs to allow us to levy similar taxes on mission of those countries," he said.
The proposal to levy property taxes on foreign missions was dropped although Indian missions in several countries have to pay even this. The NDMC has also sought the help of the foreign office to prepare the list of countries that raise bills for rendering similar services abroad.
Nearly 80 per cent of NDMC areas are occupied by foreign missions or federal government offices and bungalows. About 100 foreign missions exist in the area falling under the NDMC jurisdiction. While they pay for water, electricity and sewerage, they are exempted from paying for other services like garbage disposal, street lighting and road maintenance.
This is the second attempt by the civic body, considered the richest civic body in Asia, to make the foreign missions pay for at least basic services.
Big Burden
The NDMC says it incurs losses to the tune of 3.5 billion rupees (Dh319 million) annually to provide such services to foreign missions, which are largely located in the diplomatic enclave at Chanakyapuri. Its earlier proposal had been blocked by the foreign office, although it was not officially rejected.
"We are hopeful that our proposal will meet with approval this time around. As and when it happens, it will help us maintain and beautify the city since free services to the foreign missions drains our resources to a great extent," the spokesman said.
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