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Gurgaon civic body ends financial year with a Rs104 crore property tax deficit

The Municipal Corporation of Gurugram (MCG) managed to collect only Rs294 crore in property tax in fiscal 2016-17

gurgaon Updated: Apr 16, 2017 23:31 IST
Kartik Kumar
Kartik Kumar
Hindustan Times
Gurgaon,MCG,Municipal Corporation of Gurugram
The deficit is perplexing as the MCG had collected ₹12 crore during demonetization, from November 8 to December 15. (Sanjeev Verma/HT Photo)

After launching several schemes and collection measures, the Municipal Corporation of Gurugram (MCG) managed to collect only Rs294 crore in property tax in fiscal 2016-17.

The figure is much lower than the previous year, when the civic body had collected Rs398 crore in property tax.

The deficit is perplexing as the MCG had collected Rs12 crore during demonetization when the Central government had directed municipal corporations across the country to accept payment of all utility bills in defunct notes of Rs500 and 1,000 from November 8 to December 15.

Read more: Despite demonetisation, property tax collection may dip

Last year, MCG had also partnered with HDFC bank to receive payment of property tax through net banking, credit and debit card payments on the civic body’s website The MCG has also encouraged taxpayers to clear their debts through an easy payment method.

In February, the MCG also introduced a one-time rebate of 25% on payment of arrears from 2010 till 2016. This ended on March 31 and this led to a collection of Rs194 crore during the period.

When asked about the collection deficit, MCG Commissioner V Umashankar said in fiscal 2015-16, a rebate scheme had been launched and a major chunk of arrears pending since 2008 was cleared during that year.

Umashankar said this year, of the MCG’s 3.6 lakh properties, nearly 2 lakh property owners have paid their dues. In comparison, only 1.08 lakh had paid dues in the preceding fiscal cycle.

“After last year’s rebate scheme, there are more than 4,000 taxpayers whose bills are in negative as they paid in excess. Also, this year, the MCG had set Rs180 crore as the expected property tax recovery target. The rebate scheme launched in February was aimed at ensuring that the remaining defaulters clear their dues. This would help streamline the billing and collection process for the next fiscal,” Umashankar said.

As per data obtained from the MCG, 43,000 villagers and 6,000 government establishments have not paid their property tax dues so far.

MCG officials said the property dues of government establishments will be adjusted by the state government during their budgeting, while a policy is being drafted to recover dues from villagers.

First Published: Apr 01, 2017 23:24 IST