The Nagpur Municipal Corporation (NMC) achieve only 44% of the property tax target in the last financial year (2021-22). The huge underachievement also increased the arrears from Rs677.88 crore to Rs735.54 crore, which is more than revenue from all sources for NMC.
According to data obtained from NMC’s property tax department, of the Rs256.87 crore tax calculated for 7.56 lakh properties, the NMC could collect only Rs111.4 crore.
A senior official, however, said that the data might see some changes as many new properties have been added and many have raised objections over tax calculation.
In the last financial year, the tax target was Rs934.75 crore, including Rs 677.88 crore arrears and Rs256.87 crore current tax. Rs78.17 crore was disputed figure after their owners submitted objections over the calculations.
As per the data, Dhantoli zone had recorded highest percentage of property tax recovery. With 51.48% achievement, the zone has recovered Rs11.93 crore including Rs3.37 crore arrears and Rs8.55 crore as current tax. On April 1, 2021, the department had set Rs33.22 crore arrears and Rs15.75 crore as current tax from 23,113 property owners in the zone.
It is followed by Dharampeth zone, which recorded 32.49% collection of both arrears and current tax. Against a target of Rs37.87 crore (arrears) and Rs20.84 crore (current tax) from 45,784 properties, the zone collected Rs18.44 crore (Rs6.80 crore arrears and Rs11.63 crore current tax).
Ashi Nagar zone was last in the list of 10 zones in recovery of both arrears and current tax. As against Rs100.32 crore (arrears) and Rs25.26 crore (current tax), the zone mopped up Rs13.36 crore (Rs6.78 crore arrears and Rs6.57 crore current tax).
Tax recovery from government offices too was unsatisfactory. NMC had calculated Rs155.96 crore (arrears Rs124.95 crore and Rs31 crore current tax) from 1,806 properties, but recovered only Rs25.61 crore.
Civic activists said poor tax collection directly affects development works and other amenities provided to the citizens. Dinesh Naidu pointed out that the NMC should launch incentive schemes for zones having good tax collection. He said NMC should provide additional funds to zones which achieve more than 90% tax recovery.