The Nashik Municipal Corporation (NMC) has waived monthly penalty of 2% for three months between January and March for the regular taxpayers during the current financial year to boost the property tax collection.
As per the norms, taxpayers have to pay their annual property tax payment by December 31 every year. Thereafter, the civic body levies a penalty of 2% on the tax amount every month on dues.
“But to increase the property tax collection, we have decided not to levy penalty to the taxpayers if they pay their property tax for the current financial year by March 31. This is a part of our measure to give opportunities to the regular taxpayers to pay their property tax for the current financial year,” said Manoj Sangamnere, the assistant superintendent (tax) of the NMC.
NMC has set the property tax collection target of Rs 360 crore for 2020-21, including current demand of Rs 128 crore and remaining Rs 232 crore tax dues. So far, the civic body has earned revenue of Rs 97 crore through property tax, including around 75% of the amount from current demand and the remaining 25% as tax dues.
In the corresponding period last year, the civic body had collected property tax of Rs 135 crore. There has been a drop of 28% in the property tax collection by November 9 of the current financial year against the property tax collection during the same period last year.
The civic body has already introduced an amnesty scheme for the property tax defaulter. As per the amnesty scheme, the property tax defaulters will get 50% rebate on penalty of tax dues if they pay tax dues between January 16 and February 15. The defaulters will get 25% rebate if they pay all tax dues between February 16 and 28.
The NMC administration has warned of action against the tax defaulters in March if they fail to clear their property tax dues.