NMC revenue to rise 3 times in new property tax system

Nagpur: The cash-strapped Nagpur Municipal Corporation’s (NMC) revenue is likely to increase three times in the new ready reckoner-based rateable value property tax system. It also means citizens will pay average 2-3 times more property tax.
NMC had launched new tax system from 2015-16 and postponed its implementation to 2017-18. The revaluation of existing properties and assessment of new ones kicked-off from November 2015.

Data available with NMC property tax department shows revaluation of 4.91 lakh properties has been completed and demand notes for 4.25 lakh properties issued. Total demand for 4.25 lakh properties is over Rs300 crore.

Earlier, 4.50 lakh properties were on record, and the tax demand from these properties had been Rs165 crore per annum.

NMC assistant commissioner (property tax) Milind Meshram told TOI total revenue/current demand is likely to increase to over Rs450-500 crore on completion of revaluation drive. “We are expecting the number of properties to increase to 6 lakh. Assessment of new properties will bring a good chunk of revenue to NMC,” he said.

Apart from current demand, NMC’s arrears on existing properties is around Rs320 crore.

Only challenge for NMC is recovery of entire demand. Recovery from property tax was Rs189 crore. After launch of new tax system, the recovery increased to Rs202 crore in 2017-18. The increase was very less as revaluation of existing properties and assessment of new properties was still pending.

NMC has recovered Rs112 crore in this fiscal up to November 26, which is Rs22 crore more than that recovered last year on the same date.

Meshram said recovery will increase once NMC issues demand notes to all. “Our target is to complete revaluation drive by December-end,” he said.

The drive was launched in November 2015 with private agency Cybertech Systems and Software roped in. Target for the agency was to complete revaluation of 2,000 properties by February 2016 on pilot basis followed by remaining properties. The agency was supposed to complete the drive within 22 months from November 2015. This means the drive has been delayed by 14 months.

Meshram said the drive was delayed due to revision in policies related to the tax system. “We developed a good software under the drive. Geo-mapping of all properties, including open plots, has been completed. I think NMC is first in entire state to ensure geo mapping of open plots. We can identify expansion in existing structures and if any development in open plots using the geo mapping in future,” he said.

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