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• Prayagraj Municipal Corporation (PMC) is preparing to introduce a One-Time Settlement (OTS) scheme for pending house tax dues in June.
• More than 90,000 residential and commercial property owners are expected to benefit from relief on accumulated interest payments.
• The civic body is aiming to improve property tax recovery while reducing financial pressure on taxpayers with old dues.
• The move follows PMC’s recent decision to offer up to 40% house tax rebate for self-occupied residential buildings older than 20 years.
• The scheme comes as the corporation looks to strengthen local revenue collection amid rising civic infrastructure and water supply expenses.
Prayagraj Municipal Corporation (PMC) is set to introduce a One-Time Settlement (OTS) scheme aimed at providing relief to property owners with long-pending house tax dues across the city. The scheme, expected to be rolled out in the first week of June, will allow residential and commercial property owners to clear outstanding taxes with a waiver on accumulated interest.
According to civic officials, over 90,000 taxpayers are likely to benefit from the proposed settlement plan. The municipal corporation is expecting the scheme to improve recovery of pending property taxes while encouraging voluntary payments from defaulters who have been unable to clear old dues for several years.
The move is part of PMC’s broader efforts to strengthen property tax administration and improve municipal revenue collection without immediately resorting to strict recovery action. Property tax remains one of the biggest revenue sources for urban local bodies and supports spending on sanitation, road repairs, drainage systems, water supply and other civic infrastructure projects in Prayagraj.
In recent months, the civic body had intensified action against tax defaulters by issuing notices and warning of measures such as property attachment and water supply disconnection in severe non-payment cases. Officials now believe the OTS scheme could help reduce pending arrears through a more practical settlement mechanism.
The upcoming relief plan follows another major property tax decision taken by PMC earlier this year. The corporation had approved up to 40% rebate in house tax for self-occupied residential properties that are more than 20 years old. The benefit was introduced mainly for residents living in older localities such as Chowk, Kidganj, Daraganj, Rambagh, Kareli and Shahganj, where many ageing residential structures continue to face higher maintenance costs.
Civic authorities had clarified that only self-occupied homes would qualify for the higher rebate, while rented or commercial-use residential properties would not be covered under the exemption. Buildings less than 20 years old were proposed to receive a lower rebate after physical verification by municipal teams.
The latest proposal also comes at a time when PMC is under pressure to improve its internal revenue generation. Earlier, the corporation revised its budget estimates after lower-than-expected financial support from the state government. Reports indicated that the civic budget was reduced by nearly INR 235 crore to around INR 2,100 crore, increasing dependence on local tax collection and recovery.
At the same time, PMC has continued to increase spending on water supply upgrades, public services and civic infrastructure projects across the city. Officials believe improving tax compliance through settlement schemes and rebates could help create a more stable revenue base for future urban development works.
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