Published On : Mon, Aug 24th, 2015

Property tax: another hike likely

Nagpur: The Nagpur Municipal Corporation (NMC) has hiked property tax by 13% from this fiscal. More increase will come in the second demand note with implementation of new tax system.

In a surprise to all taxpayers, the tax amount has been increased by 10% more than expected. The civic body had taken two decisions related to property tax. One was to introduce four new taxes for a hike of 4% and the other to implement a new tax system under which tax likely to rise by almost two times. In fact, the tax was to rise by only 3% with implementation of four new taxes.

In the first demand note, the NMC introduced four new taxes and scrapped one old one. Thus, tax was supposed to increase by 3%. But tax increased by 13%, a 10% rise in general tax and 3% for new taxes.

An NMC official told TOI that revaluation of existing properties is set to begin for implementation of new tax system. “Again, demand notes will be issued later in this fiscal asking taxpayers to deposit the difference amount,” he said.

Chairman of tax consultative committee Girish Deshmukh said new tax system will benefit taxpayers. “Major beneficiaries will be the taxpayers who rented out their properties. Property tax of rented properties will come down to a great extent. Tax amount of other properties will increase but not by two times,” he said.

Deshmukh said major steps have been taken for convenience of taxpayers. “Directives have been given to ensure mutation of property tax within seven days and assessment of new properties within 15 days,” he said.

Deshmukh added that special camp for disposing of mutation and new assessment cases was held at all ten zones on Sunday. “Total 356 applications for mutation and 283 for new assessment received. 134 applications for mutation and 164 for new assessment disposed of in camps itself. Revenue of Rs32.54 lakh also received,” he said.