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Bhopal civic body on overdrive for property tax collection as fiscal year nears end

#Taxation & Finance News
PNT Reporter | Last Updated : 3rd Apr, 2023
Synopsis

The Bhopal Municipal Corporation (BMC) is on a mission to collect property and water taxes from the residents of the state capital. Having targeted large defaulters for weeks, the civic body officials are now going door-to-door to collect every penny due. The BMC has issued a 21-day notice, after which it has threatened to recover pay property tax or water tax by selling the property under section 173 of the MP Municipal Corporation Act, 1956.

The Bhopal Municipal Corporation (BMC) is on a mission to collect property and water taxes from the residents of


the state capital. Having targeted large defaulters for weeks, the civic body officials are now going door-to-door to

collect every penny due.

Since November, the BMC has been publishing the names of individuals who have failed to pay taxes on their

properties, warning that their properties will be auctioned to recover the unpaid amount. The first list comprised of

around 9,000 private properties of defaulters across 85 wards. The BMC issued a 21-day notice, after which it

threatened to recover pay property tax or water tax by selling the property under section 173 of the MP Municipal

Corporation Act, 1956.

It is not known if even a single property has been auctioned under sections 175-178. Despite this, the measures have

resulted in an increase in cess collection by about 5% over the previous year, according to sources. In 2017-18, the

BMC recovered about Rs 150 crore from city hoardings, resulting in arbitration. Several companies were involved in

the case, but the BMC eventually went into arbitration mode due to political pressure. Both parties of the last council

did not object to the move.

However, the situation has been different for individual taxpayers. Objections over assessment size and online portal

issues have yet to be resolved by the civic body. Last week, BMC Commissioner KVS Choudary inspected various tax

recovery camps across the city. He directed officials to effectively collect taxes from the current year and previous

years and take strict action against defaulters who do not pay taxes. He also instructed them to contact the taxpayers

personally, door-to-door, to ensure payment of taxes.

During the inspection, BMC additional commissioner Sandeep Kerketta, concerned Zonal Officers, ward in-charge,

and other officers and employees of the corporation were present. Chaudhary visited several wards in different zones,

receiving detailed information about the action being taken. BMC is making efforts to ensure 100% recovery as per

the set targets, establish constant contact with taxpayers, and encourage them to pay taxes. They are also going door-

to-door to collect taxes from those who do not pay taxes. Instructions were given to serve or paste notices and collect

service charges from government departments' properties, make constant contact for recovery from big defaulters.

After March 31, an additional surcharge for non-payment of taxes on self-use properties and attachment/auction of

properties applies, according to a BMC official. Therefore, the BMC is making every effort to ensure the collection of

all dues.

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