The civic administration of the city is facing a financial crunch and it is now concentrating water and property taxes to recover from the situation. For this purpose an objective of collecting 531 crore from property tax and 166 crore from water tax has been set for the financial year 2019-20.
Due to this financial crisis, civic chief  Tukaram Mundhe informed that the penalty levied on defaulters will not be exempted this year.NMC has also launched a direct campaign has been initiated to recover the pending municipal taxes from defaulters in the city.
The penalty was exempted from time to time earlier. However, this exemption did not benefit the recovery of taxes. The commissioner rights to exempt penalty as per law. But, considering the condition civic body commissioner has clearly specified in the general meeting that penalty will not be waived for defaulters. Around Rs 205 crore have been recovered from property tax collection till January 25 this year and this figure is not likely to cross Rs 260 crore by March end. The proposed expenses for financial year 2019-20 are 2,388 crore while proposed income is 2,400 crore.
And regarding water tax collection the civic body are expected to collect Rs.166 crore and until now Rs.140 crore have been collected .As per information, NMC tax recovery will be adversely affected if the penalty amount is waived off.The point to be noted here is that despite of waiving penalty many tax payers are continued to default on paying property tax and water tax to the civic body.
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