Nagpur Municipal Corporation (NMC) experiment for door-step delivery property tax demand failed to have the desired effect as Revenue Department fell short of the target of Rs 325 crore set for financial year 2024-25. After Town Planning, the Property Tax Head is identified for mopping up of much needed resources by the civic body. Given the shortage of staff, the NMC bosses decided to dispatch tax demand notices through speed post and for the same, Rs 32 per notice was paid in advance. But post analysis of the inability to reach the target, it came to knowledge of senior officials that nearly 1/3rd of demands did not reach the respective owners.

 

As per information the property tax base of NMC has nearly 6.50 lakh plus properties and of them about 1,89,190 owners did not receive the demand notices, claimed Shankar Gulani, expert on tax matters. Earlier practice was that tax surveyors in respective zones used to deliver these notices to the owners at their properties. But with stress on digital tax collection coupled with reduced manpower and moreover laxity on part of property owners in ensuring prompt payment of due tax, the NMC could not reach the estimated target. Property Tax account for 7 to 8 per cent internal accruals for the civic body, it is learnt. There are several reasons for the non delivery of demand notes, the main being non updation of tax records vis-a-vis addresses of the owners.

 

The data base of Revenue Department needs total updation to ensure that any transaction of change of property gets reflected in the record almost simultaneously. Though the practice is now done, the past transactions needs action on part of property owners where it has hit the wall. This would ensure that the tax demand note reaches the new owner. The citizens are at fault as they are not much bothered about completing the formality of mutation, it means registering the sale deed with NMC's Tax Department to update new name on property card. Now with advent of mobile technology, the department also registers mobile number so as to communicate with the property owner. But given the staff shortage, the reason is new staffing pattern that has put constraints on maximum employees on the rolls, the NMC somehow struggles to give full justice towards their duties.

 

Although cent per cent tax collection is an impossible tax, the per cent of paying property owners is mere 3 plus lakh . A major reason is objections and litigation on part of property owners disputing the assessment on part of tax surveyors. So objections have piled-up at zone level but since hearing on the same is held centrally, the pendency continues to rise without any benefit accruing to NMC. Since last two years, the Revenue Department has focussed assessment of open plots that led to rise in listed properties but pendency of tax dues also increased. But aggressive chasing by field officials yielded some positive results and same was reflected when NMC for first time crossed Rs 300 crore revenue mark in financial year 2023-24. This was historic leap for the cash strapped civic body as till then the recovery never would cross beyond Rs 200 plus mark. But still for NMC the ground needed to cover is quite long and steadily steps are being taken to address the issue.