NAGPUR: The Nagpur Municipal Corporation (NMC) recovered Rs 194.47 crore property tax as of January 29, significantly falling short of its Rs 429 crore target. This leaves a substantial balance of Rs 234.52 crore adding to the civic body’s already precarious financial position. The sluggish pace of tax recovery forced NMC to take a Rs 500 crore loan to meet its share of funding for various state and central govt-backed infrastructure projects.
Among the ten municipal zones, Laxmi Nagar (Rs 57.14cr), Hanuman Nagar (Rs 51.02cr), and Mangalwari (Rs 53.84cr) had the highest property tax demand. However, overall tax collection remained suboptimal, with Ashi Nagar (Rs 35.07cr), Lakadganj (Rs 27.34cr), and Hanuman Nagar (Rs 26.48cr) accounting for highest outstanding dues.
This shortfall has been a major cause for concern, especially as the civic body struggles to fund ongoing and proposed development projects.
In a bid to accelerate revenue collection, NMC launched an amnesty scheme on January 1, targeting Rs 850 crore property tax arrears collection. Under this scheme, defaulters are being offered an 80% penalty waiver on Rs 770 crore in accumulated interest and penalties, providing an opportunity for taxpayers to clear dues with reduced financial burden.
The move is aimed at boosting compliance and increasing tax revenue in the final quarter of the fiscal year.
NMC commissioner and administrator Abhijeet Chaudhari underscored the need for improving property tax collection to ensure the sustainability of essential civic services. The financial crunch has already started affecting basic infrastructure projects, road maintenance, sanitation, and other municipal functions, leading to growing concerns among residents and city planners about the administration’s ability to meet future demands.
With just two months left in the financial year, the amnesty scheme’s success remains uncertain. While civic officials hope for a significant uptick in recoveries, past trends suggest that many defaulters wait until the last moment to make payments. If the scheme does not yield the desired results, NMC may find itself grappling with an even wider fiscal deficit, potentially leading to further borrowing or service cutbacks.
Despite the property tax being NMC’s largest revenue source, its collection efficiency continues to be a challenge. Officials have hinted at stricter enforcement measures post-March, including legal action, property attachments, and auction of defaulters’ properties.
