If you pay your property tax by June 30, the Nagpur Municipal Corporation (NMC) will give you a 10% discount. Those who pay property taxes after June 30 but before December 31 will receive a 5% rebate. The rebate will apply to all property tax headings except cess, according to Milind Meshram, Deputy Municipal Commissioner (Property Tax) (employment guarantee and education).
NMC had previously granted the incentive to property tax early payers. The rebate was previously set at 4%. The rebate will be increased to 10% for those paying tax until June 30 and 5% for those paying tax until December 31 by the former NMC house.
The rebate was valid from 2021 to 2022. Approximately 80,000 property owners received a 10% rebate at the time, whereas 1,54,000 property owners received a 5% rebate.
In 2021-22, the target of property tax collection was Rs 327 crore. As against that, the recovery has been lesser, said sources. NMC had taken the decision to exempt residential properties up to 500 sq ft area from payment of property tax, on the lines of a similar decision taken by Brihanmumbai Municipal Corporation. Though the decision could not get official sanction, the property owners in this bracket did not pay the tax.
Sources said, this affected property tax collection in 2021- 22. Roughly around one-sixth of the total surveyed properties have an area up to 500 sq ft. Now, for 2022-23, NMC has set a target of property tax collection at Rs 350 crore, a rise by Rs 23 crore as compared to the previous year. However, the exemption from payment of property tax to residential properties is likely to have an impact on collection in the current financial year too.
Meanwhile, albeit delayed, NMC has started generating and distributing property tax demands to the property owners for the current financial year 2022-23. NMC plans to distribute all the tax demands by the first week of June.
