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Nagpur Municipal Corporation's (NMC) property tax rebate scheme, which ran from July to December 2024, successfully collected INR 83.6 crore from 163,813 property owners, with a total fiscal collection of INR 162.45 crore so far. Offering 10% rebates for online payments and 5% for offline payments, the initiative aimed to boost compliance. Despite participation from 322,000 taxpayers, 417,000 property owners missed the deadline and now face a 2% monthly interest penalty. NMC, targeting INR 350 crore this fiscal year, urges defaulters to settle dues promptly to fund city infrastructure. Nehru Nagar led payments with INR 10.89 crore, while Dharampeth lagged at INR 4.7 crore.
The Nagpur Municipal Corporation (NMC) has concluded its property tax rebate scheme, which ran from July 1 to December 31, 2024. This initiative was designed to encourage timely tax payments among property owners. During this period, the NMC collected INR 83.6 crore from 163,813 property owners. The scheme provided a 10% rebate for online payments and a 5% rebate for offline payments, aiming to boost compliance among taxpayers. Advertisement
The rebate scheme, introduced by municipal commissioner Abhijeet Chaudhari, initially offered even higher discounts for early payments, with up to 15% off for online transactions and 10% for offline payments made before June 30, 2024. By that cutoff date, the NMC had already collected INR 76.85 crore from 158,735 taxpayers. Overall, the total property tax collected in this fiscal year has reached INR 162.45 crore.
Out of Nagpur's 740,000 property owners, only 322,000 took advantage of the rebate scheme. This leaves 417,000 taxpayers who missed out on these discounts and will now face a 2% monthly interest penalty on their outstanding dues. This situation highlights a significant gap in taxpayer engagement and awareness regarding the benefits of timely payments.
A closer look at the payment data reveals that Nehru Nagar led the way with INR 10.89 crore collected from 24,526 property owners, followed by Ashi Nagar at INR 9.51 crore and Laxmi Nagar at INR 8.72 crore. In contrast, Dharampeth zone lagged behind, collecting only INR 4.70 crore from 5,820 property owners. Despite efforts to promote online payment methods, many taxpayers still prefer traditional cash payments. Statistics show that only 36.15% of property owners opted for online transactions, with approximately 195,000 taxpayers choosing to pay in cash.
Looking ahead, the NMC is now focused on meeting its revenue target for the financial year. In his budget for 2024-25, Chaudhari set a goal of INR 350 crore for the property tax department. With INR 162.45 crore already collected, the NMC needs to recover INR 187.55 crore in the remaining three months of the fiscal year. Deputy Commissioner of Revenue, Milind Meshram, has urged defaulters to settle their dues promptly. He emphasized that the revenue generated is crucial for funding essential city development and infrastructure projects.
The NMC's push for timely tax payments is part of a broader strategy to enhance the city's financial health and ensure that necessary services and infrastructure improvements can be maintained. As penalties for late payments come into effect, the NMC hopes to motivate taxpayers to comply promptly, thereby supporting Nagpur's ongoing growth and development.
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