Published On : Fri, Apr 28th, 2023
By Nagpur Today Nagpur News

NMC struggles with property tax collection as 3.8 lakh owners default in 2022-23

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Nagpur: A staggering 60% of the nearly 6.36 lakh property owners in Nagpur city have not paid property tax in the financial year 2022-23, according to data obtained from the Property Tax Department of Nagpur Municipal Corporation (NMC). The arrears due from over 3.80 lakh defaulters have reached Rs. 581 crore.

The data reveals that the highest number of defaulters is from Ashi Nagar Zone, where 88,633 property owners owe Rs. 114.44 crore to the NMC, followed by Laxmi Nagar Zone, where 35,707 owners have defaulted on paying Rs. 81.74 crore in tax. These defaulters have not been paying tax for several years, said Deputy Municipal Commissioner (Revenue) Milind Meshram.

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The civic body had expected property tax revenue of Rs. 250 crore in the last financial year, but it only generated Rs. 241 crore, he added.

The NMC’s Accounts and Finance Department has pointed out that the civic administration needs to strengthen property tax collection as it is the main source of revenue for the civic body.

Meshram said the NMC has already launched several initiatives to reduce the arrears. As of April 1, 2022, total property tax arrears stood at Rs. 786 crore. The NMC had then resolved several objections, especially from educational institutions and temples, where incorrect tax calculations were made.

The NMC should adopt a two-pronged strategy to reduce such ballooning dues. First, it should focus on optimizing the disposal of citizen complaints regarding tax, and second, it should allocate funds based on tax compliance in every Prabhag.

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