Nagpur Municipal Corporation achieves target

Nagpur Municipal Corporation achieves target
01/12/2017 , by , in News/Views

The Nagpur Municipal Corporation (NMC) is unlikely to meet the property tax target this year too. Property tax is one of the main revenues for the civic body. The target was set at Rs 564.63 crore, but the 10 zonal commissioners have achieved only 15.82% (Rs 89.33 crore) from April 2017 to November 24.

According to data compiled by NMC’s property tax department, Laxmi Nagar zone is the worst performer. Against a target of Rs 133.20 crore, the zone has so far recovered only Rs 12.61 crore.

Even performance of Dharampeth zone is no good either. Against a target of Rs 71.73 crore, the zone has so far recovered only Rs 10.35 crore, while Satranjipura zone has achieved more than 20% target with Rs 4.35 crore recovery against Rs 18.15 crore target.

In 2015-2016, the property tax demand was Rs 126.41 crore, while the arrears amounted to Rs 130 crore. But this year, the arrears have crossed Rs 263.59 crore.

Though the NMC took several initiatives to improve tax collection, none has yielded the desired result. Even amnesty scheme was aimed at collecting arrears of property tax pending, but evoked very poor response.

Given the poor tax recovery, standing committee chairman Sandip Jadhav recently convened a meeting of assistant commissioners of all 10 zones. He pulled up the property tax officials for poor recovery and directed the officials to auction property of tax defaulters. He also asked them to issue show cause notice to tax collectors who fail to meet their targets.

Today, all developmental projects have come to a standstill due to financial crunch, sources said, adding even the ongoing work of cement road works too are going at snail’s pace. As the salaries of the civic staffers are being released regularly, the employees are not facing the pinch.

Sources pointed out that NMC’s revenue will improve only when the civic chief releases the salaries of property tax department staff when they improve recovery of dues.

The NMC’s fiscal health is in dire straits and is affecting the corporators most. No new works are being planned as of now. This has left the corporators across party lines upset as residents of the areas they represent have been repeatedly demanding various development works and they have nothing to promise.

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