Shimla MC launches campaign to curb property tax evasion : The Tribune India


Tribune press service

Shimla, August 7

Shimla Municipality has launched a special campaign to check whether residents are paying property tax correctly or not.

“We have received complaints that some people use their property for business purposes but pay tax at the rates applicable to self-occupied properties. To verify how rampant the practice is, we have delegated our tax officers to the field,” said MC Commissioner Ashish Kohli.

Action after complaint

We have received complaints that some people use their property for business purposes but pay tax at the rates applicable to self-occupied properties. To verify the extent of the practice, we have delegated our tax officials to the field. —Ashish Kohli, MC curator

“Already we have found 10 cases and notices have been sent to them. They will have to pay the charges from the moment they have used the property for commercial purposes, ”said the commissioner.

Property tax is an important source of revenue for the Municipal Corporation from its own resources. The MC raises an annual claim of Rs 16-17 crore as property tax from residents living within the boundaries of the MC.

“We recover around 85% of the total demand raised, which is good. However, our property tax revenues have remained stagnant in recent years. We hope the campaign will see our property tax collection increase significantly,” Kohli said.

Just over two months ago, the MC resorted to naming and shaming property tax defaulters by posting their names on its websites. Until March 31, the MC had not received the tax from approximately 4,500 properties.

Meanwhile, the MC has started paying the government-provided relief on rubbish fees to business establishments that have remained closed during the corona-induced lockdown.

“The government had waived rubbish charges worth Rs 4 crore for commercial establishments that remained closed during the lockdown. The amount has been transferred to the MC and we have started the process of providing it to eligible people,” Kohli said. “The amount due is adjusted in the currently generated garbage bills,” Kohli said.

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