CSMC collects Rs 46 crore property tax in one month

Lokmat News Network

Chhatrapati Sambhajinagar: The amnesty scheme announced by Chhatrapati Sambhajinagar Municipal Corporation (CSMC) is receiving overwhelming response from the citizens.

The scheme, which is valid from July 15 to August 15, offers 95 per cent discount in penalty levied upon the principal amount of property tax.

Till August 11, the CSMC through its all zone offices recorded a collection of Rs 46.87 crore property tax deposited by 27,000 property-holders. The CSMC had waived off the penalty amount of Rs 7.59 crore on these properties. The discount figure will reduce to 75 per cent for one month after August 15.

It may be noted that there are more than 3 lakh properties (of all types) on the CSMC record. The CSMC levies 2 per cent interest per month on the property tax (it is 24 pc annually) annually. The compound interest spirals every year. If the current year property tax is paid between April and June (first quarter) no penalty is charged. It has been observed that more than 60 per cent property-holders in the city do not pay their tax regularly. If the tax collection is done 100 pc, the CSMC would earn a revenue of Rs 500 crore. However, the collection does not exceed Rs 170 crore and Rs 175 crore every year. Hence the penalty is collected on the outstanding tax figure. There are many property-holders who do not pay a single pie in the form of tax. For the last four years, the amnesty scheme was not implemented by CSMC. The civic chief G Sreekanth announced the scheme for two months. Till date, the collection is Rs 46 crore. An addition of Rs 50 crore- Rs 60 crore collection is expected next month.

Single day collection of Rs 4.89 crore

On Monday, 2104 property-holders deposited Rs 4.89 crore till 8 pm. This is a record collection in one month. The last date is August 15. Hence all the zone offices will remain open for the public, said Vikas Navale.