Nagpur civic body implements 5% rebate on property tax w.e.f. July 1

In positive news, Nagpur civic body implemented a 5% rebate on all property taxes that helped increase tax payments.

The decision has been long pending due to the ongoing pandemic. Nagpur Municipal Corporation (NMC) implemented a 5% rebate in property tax. It is likely to benefit more than 51,000 taxpayers falling under NMC. The rebate shall come into effect from July 1 onwards.

Previously, taxpayers have also benefited from a 10% rebate by NMC between April 1 and June 30. However, the council meeting held on July 22 suggested the rate must be kept at 5% for all real estate taxpayers. In general tax, the rebate ranged between 2-4% depending upon multiple factors that only lasted for a short while. However, this time the story had a different end.

Addressing the media, NMC Commission said, “ Timely tax payment is good for us (the government) as well as taxpayers themselves as we can focus on the welfare of the city and its people. COVID-19 pandemic has caused significant financial losses to almost everyone. The 5% rebate approved in the council meeting will be helpful while paying property tax.”

Adding to the address, he said, “The 10% rebate previously given to the people has encouraged them for timely payment. It is the reason why we have decided to extend it. We would like to incentivise each property tax payment and acknowledge timely tax payments.”

What went behind the curtains?

When a 10% rebate was introduced in April 2021, it benefitted around 51,000 people and helped collect 28 crores in tax collection until June 30. The rebate amount was calculated to be around 2 crores. As several taxpayers could not get demand notes, they were left behind. To cover this, the Nagpur civic body decided to keep a 5% rebate for all and help people further.

However, demand note distribution was delayed for 2021-22, which was to be distributed among 6 lakh taxpayers. Nagpur civic body published and gave 5.75 lakh people the demand notes by the end of May. On a zonal level, over 3 lakh taxpayers have received demand notes. The process will remain in force until all taxpayers receive their designated demand notes.

Furthering the process

The Commissioner of Nagpur Municipal Corporation told the local media and people that the distribution was delayed due to the pandemic. Besides, the private agency involved in the process was dismissed for slowing the pace. He said that the NMC staff has now been directly involved in the distribution process who are offering door to door service. For the corresponding period in the previous fiscal year, Nagpur civil body collected revenue of ₹47.5 crores wherein the current demand raised ₹29.38 crores and the remaining was collected as arrears. 

Even though there is no mention of a 5% rebate on the distribution notes, the collection and response of people have been positive.

Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.


No account yet? Register

(Visited 76 times, 1 visits today)

Leave a comment

Your email address will not be published.

Buy and Sell Properties
25k+ Properties
241+ Location
311+ Agents
1Lac+ Customers