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The Lucknow Municipal Corporation (LMC) has implemented a strategic plan in collaboration with the electricity department to enhance the collection of property taxes in the city. Mayor Sushma Kharakwal has proposed an initiative to cross-reference household data with power connection records to identify any discrepancies and bring unregistered properties under the tax net.
Property tax serves as the primary source of income for the LMC, and the revenue collected through this tax is essential for the development of various wards by elected representatives. However, despite having approximately 600,000 registered properties within the municipal corporation, only around 365,000 properties are currently paying taxes. This indicates a significant number of properties that remain unidentified and untaxed. Mayor Kharakwal aims to achieve 100% compliance by ensuring that taxes are collected from all buildings within the city.
In an interview with TOI, Mayor Kharakwal stated that they would request the Uttar Pradesh Power Corporation Limited to share their records for the purpose of matching data. This collaborative effort will not only assist in identifying unregistered properties but also help determine the duration of permanent connections, enabling the calculation of tax payments accordingly.
To alleviate the burden on citizens, the mayor plans to propose an attractive discount under a one-time settlement scheme, which would require approval from the state government. This scheme aims to provide incentives for property owners to settle their outstanding tax payments and bring their properties into compliance.
Recently, a Geographical Information System survey commissioned by the LMC uncovered property tax evasion of approximately Rs 80 crore over the past three years. The survey revealed that approximately 326,000 new houses constructed within the last two years remain unregistered for property tax purposes. Furthermore, over 216,000 property owners have undervalued their properties, leading to lower tax payments over the same three-year period. The estimated tax evasion amounts to Rs 60 crore for the new properties and Rs 20 crore for the undervalued properties.
The LMC is committed to addressing these issues and rectifying the gaps in property tax collection. By collaborating with the electricity department and leveraging the power connection records, the municipal corporation aims to bring unregistered properties into the tax net, thereby increasing revenue for the development of various wards. The proposed one-time settlement scheme would provide an opportunity for property owners to settle their dues while benefiting from attractive discounts, further encouraging compliance.
This story was earlier published in TOI.
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