The Kolhapur Municipal Corporation (KMC) has introduced a relief measure for property tax defaulters by offering a 30-50% waiver on fines for the current and previous years. Civic chief K Manjulekshmi announced the waiver, with a 50% reduction for payments before February 15, gradually decreasing to 30% until March 15. The civic body imposed a 2% monthly fine on defaulters, who collectively owe around INR 100 crore. The initiative aims to boost compliance. Failure to make the overdue payments would lead to property seals and restrictions on property transactions and loans. Last year, a similar scheme had significantly increased revenue collection.
The Kolhapur Municipal Corporation (KMC) has decided to provide relief to property owners who have defaulted on their tax payments. Civic chief K Manjulekshmi announced a significant waiver on fines imposed on property tax defaulters for both the current and previous years. The decision allows for a 50% waiver on fine amounts for those who clear their dues before February 15. The waiver percentage decreases to 30% for payments made between February 16 and March 15. The civic body had imposed a 2% fine per month on the total tax amount due from defaulters, who collectively owe around INR 100 crore to the Municipal Corporation.
The initiative aims to encourage defaulters to settle their outstanding dues promptly. Property tax superintendent Sudhakar Challawad revealed that, to date, the corporation has collected INR 48 crore in property tax. Among the 1.6 lakh property owners in the city, approximately 89,000 have paid their taxes, leaving a substantial number of defaulters. The waiver scheme is seen as a measure to boost compliance and revenue collection.
The majority of defaulters are residential property owners, often entangled in disputes over ancestral property ownership. Some property owners, especially those investing in flats or houses, tend to neglect regular tax payments.
Property tax serves as a crucial source of income for the KMC, with a target collection of INR 108 crore set for the current financial year (2023-24). Last year, a similar waiver scheme was implemented, resulting in a significant increase in collection figures from INR 79 crore.
To enforce compliance, the KMC plans to seal the properties of defaulters in the last 15 days of the financial year. Additionally, outstanding dues will be linked to property documents, preventing owners from selling their properties or obtaining loans without settling their tax liabilities. The civic chief's authority to offer waivers is exercised with the civic body's best interests in mind, providing a rational approach to managing fines and encouraging timely tax payments for the benefit of the community.
Advertisement
Facebook
Whatsapp
