Nagpur: The Nagpur Municipal Corporation’s (NMC) Property Tax Department has recently proposed a comprehensive revision in various taxes, including a 4% increase in general tax across all five slabs. Additionally, the department has recommended a doubling of five other taxes from the existing 1% to 2%, as reported by a local daily.
According to the report, the proposed tax revisions are as follows:
Today’s Rate
Tuesday 12 Nov. 2024
1. General Tax: A 4% revision is proposed in all five slabs.
• For tax amounts between Rs 1 and Rs 2,000: Increase from 14% to 18%.
• For tax amounts between Rs 2,001 and Rs 5,000: Increase from 18% to 22%.
• For tax amounts between Rs 5,001 and Rs 20,000: 22% to 26%.
• For tax amounts between Rs 20,001 and Rs 50,000: Increase from 26% to 30%.
• For tax amounts above Rs 50,001: Maintain at 30%.
2. Other taxes: The civic body proposes a 100% revision in fire tax, water tax, tree cess, streetlight, and education cess, increasing them from 1% to 2%.
The proposed tax revisions are subject to approval by Municipal Commissioner and Administrator Abhijeet Chaudhari. If approved, the changes will be implemented in the next financial year. The likelihood of implementation is uncertain due to impending major polls, including Lok Sabha, State Assembly, and Municipal Corporation elections, which may influence decision-making.
The Property Tax Department’s revenue target for the 2023-24 fiscal year is Rs 300 crore, part of the overall budget of Rs 3,336 crore. As of now, the department has recovered over Rs 224 crore, and achieving the target within the remaining month appears challenging.
With no recent revision in civic taxes, NMC’s dependency on government funds has increased significantly, accounting for 7-8% of its revenue. The last revision in property tax occurred in April 2015. Despite poor tax collection, outstanding tax amounts to Rs 900 crore. In January this year, an amnesty scheme was announced for tax defaulters, and efforts to recover taxes were intensified.
NMC had last revised the Property Tax in 2015. The Property Tax rate levied by NMC is much lower than many other municipal corporations like Pimpri Chinchwad, Nashik, Amravati etc, the report said. Since there is no general body, citing provisions of Maharashtra Municipal Corporation Act, the department has submitted a proposal before Administrator Chaudhari. As per the Act, NMC can revise Property Tax every year, the report explained.
In 2022, the civic administration had proposed a revision in general tax, which was rejected by the then BJP governed general body. Even in 2023, a similar revision was proposed, but tax remained unchanged.
NMC levies 11 types of taxes, covering general tax, sewerage tax, sewerage benefit tax, water tax, fire tax, tree cess, education tax, and state government taxes.
The proposed tax revisions by NMC’s Property Tax Department, if approved, could impact residents and businesses across various tax slabs. However, political considerations and the upcoming elections may influence the final decision. The fiscal challenges faced by the department, coupled with the dependency on government funds, underscore the complexity of the situation. Further updates will be provided as the situation evolves.
