Ghaziabad civic body aims for 100% online property tax payments

Officials said that they received directives from the state government to diligently work towards this objective, given that the current coverage stands at approximately 60-65 per cent

The Ghaziabad municipal corporation has initiated a concerted effort to achieve a 100 per cent transition to online payment transactions for property tax collections from households, officials aware of the development said.

Corporation officials said that they received directives from the state government to work towards digitisation. (Sakib Ali/HT Photo)

Officials said that they received directives from the state government to diligently work towards this objective, given that the current coverage stands at approximately 60-65 per cent.

The corporation’s jurisdiction encompasses around 448,000 properties, and this number is expected to increase to 664,000, as previously untaxed properties come under the tax net following a Geographic Information System (GIS) survey conducted last year.

Sanjeev Kumar Sinha, the corporation’s chief tax assessment officer, said, “In accordance with government directives received on August 10, we have been instructed to achieve 100 per cent online tax payment coverage. Currently, our coverage stands at approximately 60-65 per cent for approximately 4.48 lakh properties. To achieve this goal, we are planning to procure POS machines and have also initiated efforts to enable payments through the Unified Payment Interface (UPI).”

Official records indicate that the corporation has set a target of approximately ₹33,230.44 lakh for the fiscal year 2023-24, while it has collected approximately ₹8,198.01 lakh from April 1 to August 29 this year.

During the fiscal year 2022-23, the civic agency collected ₹20,667.1 lakh in tax revenue against a target of ₹26,813.3 lakh. Similarly, the collection for the fiscal year 2021-22 amounted to approximately ₹17,547.98 lakh against a target of ₹25,935.04 lakh.

“At present, tax payments can be made through limited online modes, and cash payments are also accepted at our zonal offices. A computerized receipt is provided instantly. We anticipate that by the end of this year, property owners will be able to make payments online and in a cashless manner,” added Sinha.

Meanwhile, former councillors familiar with the workings of the civic agency have suggested changes to the process of sending tax bills to households.

“It is often observed that tax bills are generated and distributed a few months after the start of the financial year. The agency should streamline the process so that people receive bills at the beginning of the financial year. This will also aid in increased collections, and stricter enforcement against tax defaulters should be implemented,” said Rajendra Tyagi, a former councillor from Raj Nagar.

In a recent August survey conducted by the corporation, it was discovered that at least 33,061 shops were operating from residential buildings and houses in the city. Surprisingly, these establishments were being charged at residential tax rates rather than commercial rates.

The corporation has devised a plan to reclassify such establishments under mixed land use, subjecting the shop areas to commercial rates, which are generally three to six times higher than residential rates.

Officials estimate that the 33,061 shops currently pay ₹6,67,29,006 in taxes per year, which is expected to increase to ₹31,09,89,420 under the commercial rate. This change is anticipated to generate an additional estimated revenue of ₹24,42,60,414 for the civic body.