The decision to constitute a committee was announced by the Standing Committee chairman Shanti Desai yesterday after leader of the Opposition Rambabu Sharma suggested certain amendments. A proposal to raise the trade licence fee was also discussed in the meeting today.

Even before the committee could discuss the committee's recommendations, Sharma put forward his suggestions. He said that apart from war widows, gallantry award winners and those handicapped during war who were to be exempted from paying property tax under the committee's recommendations, national award winners should also be exempted. Moreover, he felt that the exemption should be applicable to only those house owners who are residing in their houses and have not rented them out.

He also suggested that apart from houses constructed on 26 square metre plots, houses on 32 sq mt and 48 sq mt plots should also be exempted, whether they were allotted to the owners directly or were purchased on Power of Attorney.

He also suggested that exemption be extended to those residing in Janata Flats or resettlement colonies, even if they had carried out additional construction. As for the 15 per cent rebate suggested for Group Housing Societies, Sharma suggested that since the MCD was not providing them basic facilities like street lights, sanitation and roads, they should be completely exempted. He also suggested a 20 per cent rebate for flat owners in DDA housing societies.

He maintained that those residing in urban villages should be exempted as against the committee's recommendation to exempt only original land owners. He also called for the extension of the last date for payment of property tax to March 31, 1999.

The committee formed to look into the amendments will include Municipal Commissioner V.K. Duggal along with Sharma and Desai. Putting forward a proposal for increasing the trade licensing fee in both conforming and non-conforming areas, MCD officials recommended that the licensing fee should be raised from Rs 40 to Rs 400 in conforming areas.