MC brings OTS to settle property tax dues

The government has approved the ‘One-Time Settlement Policy’ to ease the financial burden on residents of MC areas who have unpaid or partially paid property tax, stated MC Commissioner Gulpreet Singh Aulakh.

The official said that the policy, applicable to property taxes governed by the Punjab Municipal Act, 1911, and the Punjab Municipal Corporation Act, 1976, offers relief to taxpayers by providing exemptions from penalty and interest under certain conditions.

Taxpayers who pay their entire outstanding property tax amount in a lump sum by July 31, 2025, will receive full exemption from penalty and interest, he added.

As per the policy, taxpayers depositing the tax amount between August 1 and October 31, will be eligible for a 50 per cent exemption in penalty and interest. After October 31, full penalty and interest will be collected on outstanding amounts as per the existing rules.

The government has also increased property tax by 5 per cent for the year 2025-26, which will be collected at existing rates.

The official added that certain categories are eligible for full exemptions, including single-storey residential houses up to 125 sq ft and residential flats up to 500 sq ft.

MC Commissioner Gulpreet Singh Aulakh encouraged eligible taxpayers to take advantage of this one-time settlement policy and settle their outstanding property tax dues to avoid future penalties and interest.

In the last financial year, the MC collected around Rs 4 crore more than the previous year but failed to achieve the recovery target set during the last budget. The MC had proposed to collect Rs 50 crore from property tax but despite the many efforts made, the target remained short by Rs 8 crore as it could only get Rs 42 crore. The one-time settlement scheme is expected to recover the dues from the property owners.