The Hubballi-Dharwad Municipal Corporation (HDMC) achieved a record INR 100 crore property tax collection within seven months of FY25, marking the highest in its history. Innovative measures such as online payments, doorstep collections, and extended tax concessions played a pivotal role in reaching this milestone. Despite challenges, including financial strain and criticism from local leaders, HDMC's people-friendly approach proved transformative. With the potential to generate INR 250 crore annually, HDMC's success underscores the importance of efficient tax collection strategies.
The Hubballi-Dharwad Municipal Corporation (HDMC) has made history by collecting over INR 100 crore in property tax during the first seven months of FY25, surpassing expectations and breaking its previous records. By October-end, the civic body had amassed INR 100.2 crore against its annual target of INR 141 crore, thanks to innovative and taxpayer-friendly initiatives.
Historically, HDMC faced criticism for sluggish tax collection, compounded by poor financial health and delays in government grants. Under mounting pressure, Commissioner Ishwar Ullagaddi spearheaded measures to simplify tax payments. These included introducing online payment options, enabling taxpayers to avoid physical queues during extreme weather. Additionally, Point of Sale (PoS) machines empowered tax officials to collect payments directly from citizens' doorsteps, reducing barriers to compliance.
A 5% concession for early taxpayers, initially valid in April, was extended to August, significantly boosting revenue. For instance, INR 55.3 crore was collected in August alone, the highest monthly collection. Deputy Commissioner (Revenue) Vishwanath PB highlighted other collections, including INR 9.9 crore in penalties, INR 6.2 crore in Solid Waste Management (SWM) cess, and INR 17.9 crore through other streams, bringing the total collection to remarkable heights.
However, challenges remain. The HDMC oversees 3.4 lakh properties, but only 2.5 lakh owners paid taxes by October. Legal entanglements and unregistered layouts contribute to unrealized potential, estimated at INR 250 crore annually. Former mayor Iresh Anchatageri emphasized that resolving such issues could unlock even greater revenue streams.
This milestone demonstrates the transformative power of efficiency and innovation. By prioritizing taxpayer convenience and addressing systemic inefficiencies, the HDMC not only bolstered its revenue but also set an example for other civic bodies. This achievement is not just a testament to administrative reforms but a reminder of the untapped potential in structured urban governance.
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