Published On : Tue, May 7th, 2024
By Nagpur Today Nagpur News

Cash-starved NMC’s coffers dented as 50% owners default on Property Tax

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Nagpur: A common misconception surrounding property tax defaults in Nagpur has been debunked by recent data released by the Nagpur Municipal Corporation (NMC). Contrary to popular belief, the majority of defaulters owe relatively modest sums, with a significant portion owing less than Rs 10,000 each. However, the cumulative impact of these smaller debts is substantial, amounting to a staggering Rs 59.38 crore in unpaid taxes. In contrast, a smaller group of 136 property owners with outstanding dues exceeding Rs 5 lakh collectively owe NMC Rs 58.53 crore.

The scope of the issue becomes even clearer when examining the broader picture. Out of approximately 7.05 lakh property owners in Nagpur, nearly half, or 3.4 lakh individuals, have failed to pay their property tax for the fiscal year 2023-24. The cumulative dues from these defaulters amount to a significant Rs 140.93 crore.

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Further analysis of the data reveals significant disparities among different zones within Nagpur. The residents from Ashi Nagar Zone top the list of defaulters among the 10 zones of NMC. A total of 80,815 owners here are yet to clear their dues. Nehru Nagar Zone comes next, with 52,289 property owners not paying tax for the financial year 2023-2024. Hanuman Nagar Zone has 40,503 defaulters, while Lakadganj Zone is close behind with 40,388.

In Mangalwari Zone, 36,854 owners have not paid their tax. Laxmi Nagar Zone has 30,942 defaulters, and Satranjipura Zone has 20,542. Dharampeth Zone reports 20,047 property owners who haven’t paid their tax. Gandhibagh Zone has a lower number of defaulters at 10,290, and Dhantoli Zone has the least, with 8,174 owners not clearing their dues.

The implications of this widespread tax default are far-reaching. The total property tax arrears for NMC have exceeded a monumental Rs 731 crore by March 31, 2023. Timely tax payments are imperative for NMC to deliver essential services effectively. A former corporator emphasized the importance of collecting these arrears for the city’s development, highlighting the necessity of funds for maintaining public services and infrastructure.

An NMC Finance Department official underscored the significance of these tax collections, particularly in the context of ongoing projects funded jointly by the government, where NMC must cover half the costs. Complete tax recovery would obviate the need for borrowing, thereby bolstering NMC’s financial health.

Amnesty Schemes and initiatives:

In an effort to recover these arrears, NMC introduced an amnesty scheme earlier this year, albeit with disappointing results. The scheme garnered only Rs 69.43 crore between January 1, 2024, and March 31, 2024. Additionally, NMC has announced several schemes, including a 15% rebate in property tax, aimed at incentivizing timely payments.

The data released by NMC paints a concerning picture of property tax defaults in Nagpur, challenging the prevailing notion that only the affluent are delinquent in their payments. With substantial arrears accumulating over the years, concerted efforts are needed to recover these dues to ensure the sustained provision of essential services and the development of infrastructure in the city.

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