Demonetization comes as blessing in disguise for NMC in recovery of taxes

The demonetization has come as blessing in disguise for Nagpur Municipal Corporation (NMC) as it has mopped up various taxes in crores in the past three days of deadline. On December 29, 2851 people paid Rs 1.24 crore, on December 30, 3349 people remitted Rs 1.48 crore and on the last day of the year i.e. December 31, 2703 people cleared the pending taxes to the tune of Rs 1.27 crore.

The Chairman of NMC’s Tax Assessment Committee Girish Deshmukh said that 50 percent defaulting people cleared their Property Tax dues in the last three days of the year. Similarly, The Market Department also collected a large revenue during the period. Under the financial year 2016-17, NMC pocketed Rs 4.59 crore on account of Market tax and Rs 461 crore towards LBT. The State Government pays Rs 40.59 crore in lieu of LBT. But still Rs 100 crore LBT is to be recovered. In this financial year, NMC coffers were filled with Rs 115.62 crore by way of Property Tax, Deshmukh said.

“The demonetization has certainly benefitted the NMC. But still the local body is far away from the target. The ruling party had targeted Rs 750 crore through LBT, Rs 306 crore Property Tax and Rs 7.55 crore by way of Market tax. Only three months of the financial year to go, but the recovery target is not satisfactory. 62 percent of LBT has been recovered with the help of State Government. But the Property Tax recovery is dismal with only 37 percent figure although Market Tax recovery is 61 percent of the target. Interestingly, due to demonetization, since the financial year 1970-71 till this financial year, Rs 29,03,59,732 have been recovered towards new and pending Property Tax for a total of 66734 properties,” Deshmukh said.