The Municipal Corporation has announced an important update concerning property tax on both residential and government properties. Effective immediately, any delay in the timely payment of property tax will now incur a penalty of 1% interest per month. This move aims to ensure timely collections and applies equally to all government departments and public sector units (PSUs).
Key Highlights of the New Regulation:
- Discount for Early Payment: Property owners who pay their taxes by June 30th each year will receive a 10% discount. However, failure to pay within this period will result in a penalty of 1% interest per month until the tax is settled.
- Application Across the Board: This regulation extends to central government bodies, all government departments, and PSUs, reinforcing the importance of adherence to tax obligations.
- Service Charge Compliance: It has been disclosed that government departments are responsible for paying 75% of the property tax as a service charge. However, it’s observed that many departments tend to delay their payments until the end of the financial year, which financially impacts the corporation as it delays the inflow of expected funds.
- Legal Implications for Non-Compliance: The corporation has made it clear that non-compliance or delayed payments will not only attract the aforementioned interest but may also lead to legal actions. A resolution to this effect was passed in a council meeting on March 7th, following which the order was officially issued.
Financial Impact:
Sources within the corporation reveal that government departments alone owe approximately two thousand crore rupees in outstanding property taxes.
The corporation’s strategy is aimed at recovering these dues in a timely manner. In the previous fiscal year, government properties and offices contributed 850 crore rupees to the municipal tax revenue.
In the fiscal year 2022-23, the corporation introduced the Samriddhi scheme to address outstanding property tax dues, signaling a proactive approach to revenue collection.
However, officials have clarified that there are no current plans for a general amnesty scheme, urging all defaulters to clear their dues to avoid legal repercussions.