The property tax collection saw a sharp fall in the first month of the new financial year, despite 5% discount for citizens who pay annual the amount in the first quarter of the financial year.
The Nashik Municipal Corporation (NMC) collected only Rs 2.35 crore in April as against Rs 9 crore during the corresponding month last year.
Civic officials said the main reason for poor collection of property tax is the current lockdown to contain the spread of coronavirus.
“People’s incomes have been affected due to closure of businesses and some sectors announcing salary cuts. This has overall led to a drop in property tax collection,” said a civic official.
“Usually, we conduct a drive against property tax defaulters in March, but could not do it this time because of the outbreak of coronavirus,” said the official.
The NMC usually collects around Rs 15-20 crore in the month of April, but it was less last year because of the Lok Sabha elections as most of the staff of property tax department had been engaged in election duties.
The civic body had collected property tax of Rs 15 crore during the month of April in 2018.
The NMC has introduced incentives for property tax payers from the current financial year. Accordingly, citizens who pay the property tax in April and May will get up to 5% rebate in the tax, while those who pay in June and July will get rebate of 3% and 2% respectively, said NMC officials.
In 2019-20, the property tax collection was Rs 144 crore, which was the highest ever figure in the history of the municipal corporation.
The civic body’s property tax collection in the previous financial year of 2018-19 was Rs 114 crore. It had for the first time crossed the Rs 100-crore mark in property tax collection this year.
