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The Nashik Municipal Corporation (NMC) has taken decisive action against property tax defaulters, serving notices to a staggering 2.4 lakh individuals and businesses with collective dues amounting to nearly Rs 470 crore. The move comes as the civic body strives to meet its property tax collection target of Rs 210 crore for the current financial year (2023-24).
In a bid to ensure compliance, the NMC has given defaulters a 15-day ultimatum to clear their outstanding dues, failing which the property tax department would issue warrants.
The property tax department has initiated the crackdown in two phases. During the first phase, notices were dispatched to 2.37 lakh tax defaulters, all of whom owed the civic body sums exceeding Rs 5,000. Maximum defaulters are from the Panchavati division of the civic body, with a staggering 59,961 defaulters in the region accounting for dues of Rs 124.11 crore.
Despite the widespread tax evasion, the Nashik Municipal Corporation has seen a remarkable 25% growth in property tax collection during the period from April 1 to October 22, reflecting a noteworthy uptick in revenue. In the current fiscal year, the civic body has already collected Rs 130 crore in property tax payments, a substantial increase from the Rs 104 crore collected during the same period last year. For the last financial year, NMC had collected Rs 188 crore towards property tax, which was the highest ever tax collection in the corporation's 40-year history.
The urgency behind this crackdown is driven by the guidelines of the 15th Finance Commission. As per the guidelines of the 15th Finance Commission, NMC has to collect property tax amounting to Rs 210 crore. The NMC will get a government grant under the 15th Finance Commission only after it meets the property tax collection target.
With a massive 5.3 lakh registered properties spanning six divisions within the city, the NMC faces the daunting task of ensuring tax compliance among a significant portion of its constituents. This move to confront tax defaulters represents a significant step towards boosting the city's financial health and maintaining essential public services.
As the Nashik Municipal Corporation tightens its grip on property tax collection, the authorities have set a strict deadline. With a property tax collection target of Rs 210 crore and the need to secure government grants, the civic body is leaving no stone unturned in its pursuit of overdue payments. The future financial stability and continued growth of Nashik rely on the collective commitment to tax compliance within the community.
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