Shimla MC launches drive to check property tax evasion

Tribune News Service

Shimla, August 7

The Shimla Municipal Corporation has launched a special drive to check whether residents are paying property tax accurately or not.

“We have received complaints that some people have been using their property for commercial purposes but are paying the tax at the rates applicable to self-occupied properties. To check how rampant the practice is, we have deputed our tax officials in the field,” said MC Commissioner Ashish Kohli.

Action after complaints

We have received complaints that some people have been using their property for commercial purposes but are paying the tax at the rates applicable to self-occupied properties. To check how rampant the practice is, we have deputed our tax officials in the field. —Ashish Kohli, MC Commissioner

“Already, we have found 10 cases and notices have been issued to them. They will have to pay the charges from the time they have been using the property for commercial purposes,” said the Commissioner.

Property tax is a major source of income for the Municipal Corporation from its own resources. The MC raises an annual demand of Rs 16-17 crore as property tax from the residents living within the MC limits.

“We recover around 85 per cent of the total demand raised, which is good. However, our income from property tax has remained stagnant over the last few years. We hope the drive will see our property tax collection go up significantly,” said Kohli.

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

Meanwhile, the MC has started disbursing the relief provided by the government on garbage fee to the commercial establishments that remained closed during the corona-induced lockdown.

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

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