Despite demonetisation, property tax collection may dip

As the financial year approaches its closing, Municipal Corporation of Gurugram (MCG) commissioner V Umashankar has directed officials to address all property tax related issues by February 10 and notify property owners of the same.

Despite an expected boost in collection owing to demonetisation and launching of online payment of property tax, the municipal corporation’s property tax collection has dipped by 68% last year. It collected only ₹121 crore in property tax till December 31 against ₹387 crore in 2015.

Umashankar held a meeting with senior MCG officials on Tuesday morning and directed them to compile a list of property tax defaulters and send them notices.

“The commissioner claimed that there is a possibility that residents may have not received notices issued by the MCG earlier and, hence, the notices have to be sent again. In addition, mobile numbers and emails of tax payers will be updated to increase communication options for informing them about their dues,” SS Rohilla, spokesperson of MCG, said.

It is learnt that Umashankar has also directed officials to compile sector-wise and colony-wise property tax records as a measure to help MCG identify loopholes and discrepancies in tax collection by zonal tax officers. Also, data on property tax paid and pending needs to be updated.

The commissioner also directed MCG officials to not rely on survey reports of property tax and conduct on the spot verifications.

As per sources, MCG officials have decided that if defaulters do not pay their taxes despite repeated reminders, then their properties will be attached and police assistance should be sought for the same. Residents also need to declare their self-occupied property by March 31.

The MCG had been anticipating a ₹500 crore earnings this year against its annual average of ₹400 crore in the preceding years.

Collection was expected to increase after the Central government ordered municipal corporations to accept payment of utility bills in defunct ₹1,000 and ₹500 notes from November 8 to December 15 last year. This had resulted in a large number of people queuing up at MCG offices for spending their defunct notes by clearing arrears. A total of ₹12 crore in property tax was recovered in this period.

Last year in February, MCG had also partnered with HDFC Bank to receive payment of property tax using net banking and credit and debit card payments through its website www.mcg.gov.in. The online assessment was also expected to increase revenue collection.