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With the financial year-end approaching, Trichy Corporation has intensified arrears recovery, targeting commercial properties with overdue taxes exceeding three years. As of March 2, tax collections reached INR 137.3 crore, with strict measures like shutting underground drainage (UGD) facilities boosting recoveries. Meerut and Hyderabad municipal bodies have adopted similar tactics, including sealing properties and issuing auction warrants. Meanwhile, Delhi introduced tax waivers to encourage payments. Trichy's survey of 5,400 properties added INR 10 crore in revenue, and UPI payments have simplified collections. These strategies aim to enhance tax efficiency and civic resource management across municipalities.
With less than one month to go before the deadline,, Trichy Corporation has intensified efforts in recovering arrears. The civic body is focusing on commercial properties who have not cleared their taxes for over three years. As of March 2, the authorities are said to have collected INR 137.3 crore in taxes. Advertisement
The civic body is taking stringent measures such as shutting down underground drainage facilities (UGD) to compel companies to pay their dues. These tactics have resulted in a noticeable increase in tax collections over the last month. Arrear recovery rose by INR 3 rore within one month from INR 16.6 crore on Jan 30 to INR 19.5 crore in Feb.
As the financial year comes to an end, municipalities across the country are taking such measures to ensure they meet their collection targets. In Meerut, the Meerut Municipal Corporation (MMC) has resorted to sealing of shops as a means of collection. The Municipal Commissioner has set a daily target of INR 1 crore in collections, with the aim of securing INR 100 crore by the financial year end. Similarly, The Greater Hyderabad Municipal Corporation (GHMC) has issued warrant notices to over 75 properties under Section 269 of the GHMC Act which empowers the municipal body to seize and auctions properties to recover unpaid dues.
Some municipal bodies have resorted to tax waiver schemes to encourage payment of arrears. Last month, the Municipal Corporation of Delhi (MCD) introduced a house tax waiver scheme which offers full exemption from house tax for properties up to 100 square yards including residential shops. Properties ranging from 100-500 square yards are eligible for a 50 percent exemption and those that did not qualify earlier are now eligible for a 25 percent exemption.
Overall the Trichy Municipal Corporation has had a good year with regard to collections. As of January 30, it had collected more than 60 percent of its target, up from 55 percent during the same period in the previous financial year. The local body recently concluded a survey of over 5,400 properties, adding INR 10 crore to its revenue by correcting previous tax assessment errors. It also introduced UPI payments for tax collection making it easier for residents and property owners to pay their dues including water charges, non-revenue tax, underground drainage user fee and professional tax.
These efforts made by Trichy Corporation are part of a broader initiative to improve tax efficiency and fund allocation. If successful, it could offer other municipalities in the state and country solutions and insights into better management of civic facilities and resources.
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