The Nashik Municipal Corporation (NMC) has extended its amnesty scheme, offering a 95% penalty concession on property tax dues for an additional month. This decision follows a positive response from defaulters over the last two months, during which NMC collected INR 57 crore from approximately 32,000 defaulters. For payments made in January, the penalty concession will be reduced to 85%. The civic body had earlier implemented a similar scheme in 2021, but it received limited success. This year, the NMC aims to achieve its property tax collection target of INR 250 crore, having already collected INR 185 crore so far.
The Nashik Municipal Corporation (NMC) has extended the 95% penalty concession for property tax defaulters until the end of this month. Payments made next month will see a reduced concession of 85%. Officials stated this decision was driven by the encouraging response over the past two months.
Earlier, the penalty concession for December was capped at 85%, but the NMC recently revised it to 95% to incentivise defaulters. Property tax arrears are currently estimated at INR 600 crore, of which INR 268 crore constitutes penalties. The civic body imposes a 2% penalty monthly on unpaid property tax and also recovers costs incurred from issuing notices and warrants to defaulters.
The amnesty scheme, introduced on 1 October this year, initially offered a 95% concession on penalties for payments made by the end of November. To date, the NMC has collected INR 57 crore from approximately 32,000 defaulters under this initiative.
In contrast, a similar scheme launched in October and November 2021 yielded disappointing results, with only INR 14.86 crore collected during that period. However, this year, the NMC's efforts have shown significant progress. The civic body has already collected INR 185 crore in property taxes during the ongoing financial year, surpassing the INR 135 crore collected during the same period last year. The NMC aims to achieve its target of INR 250 crore in property tax revenue for the 2024-25 financial year.
The NMC's decision to extend the 95% penalty concession has proven beneficial in improving property tax collection, as evidenced by the significant increase in revenue this year compared to previous years. By offering these incentives, the civic body aims to further reduce tax arrears and encourage timely compliance among defaulters. With INR 185 crore already collected, the NMC appears on track to achieve its ambitious financial year target of INR 250 crore.
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