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The Bhubaneswar Municipal Corporation (BMC) plans to collect around INR 72 crore in holding tax from buildings on land owned by the Odisha Industrial Infrastructure Development Corporation (IDCO) in the current fiscal year. The collection, beginning in early February, follows government approval last year to levy tax on these previously exempt properties. Educational institutions account for nearly INR 32 crore of the total dues. BMC calculates holding tax based on land value and building cost, while past compliance drives and resident welfare associations have supported the civic body's efforts to improve tax collections.
The Bhubaneswar Municipal Corporation (BMC) is set to collect about INR 72 crore in holding tax from buildings constructed on IDCO land during the current fiscal year. Government approval last year allowed BMC to levy tax on these properties, which were earlier exempt from assessment. The civic body will begin enforcement from the first week of February to recover dues, aiming to strengthen its revenue base. Advertisement
Of the total amount, educational institutions alone owe approximately INR 32 crore. Civic officials noted that the dues also include current liabilities and arrears from residential, commercial, and government establishments. The holding tax remains a significant source of revenue for the municipal corporation, calculated annually based on land value and building costs.
BMC deputy commissioner (revenue) Ajay Mohanty stated that earlier the civic body could not assess establishments on IDCO land, including industrial clusters and other institutions. After receiving government approval, the total holding tax was assessed at INR 72 crore, and enforcement will be intensified from February to maximize collection.
Some prominent educational institutions have challenged the assessed tax in the Orissa High Court, highlighting ongoing disputes over tax liability. The civic body calculates holding tax at 0.5% of the land value in a particular area, which varies across localities, and adds building costs calculated at INR 1.35 per square foot of built-up area. Land value revisions by the government in different locations increased the final tax amount, but the Orissa High Court halted the use of revised rates in 2021. Since then, BMC continues to collect tax using older rates.
In previous efforts to improve compliance, BMC planned around 900 special camps across 67 wards, involving resident welfare associations to educate property owners on the importance of timely tax payment. Some camps were conducted in the past, and the program will be intensified in February to encourage greater participation and reduce arrears.
This move to collect tax from IDCO land is part of BMC's broader effort to improve fiscal management. By ensuring enforcement and engaging with property holders, the civic body aims to secure much-needed revenue to support city services and infrastructure development.
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