Unpaid property tax of Rs 14 crore hits dev works in Paonta Sahib

The Municipal Council (MC) of Paonta Sahib is facing a financial crunch due to the accumulation of Rs 14 crore in unpaid property taxes over the past 24 years. This backlog is severely hindering the town’s development and forcing the council to rely heavily on government grants.

The property tax, which is calculated based on whether a building is residential or commercial, was introduced in 2001. The council governs 13 wards, accommodating over 7,000 families and a population exceeding 40,000. Despite repeated attempts to recover these dues, including issuing notices to defaulters, the majority of the arrears remain unpaid, leaving the council strapped for funds.

To incentivise payment, the MC recently launched a scheme offering a 30 per cent discount on lump-sum payments of outstanding taxes. This offer, valid until March 31, is an effort to encourage defaulters to clear their dues. However, the arrears continue to weigh heavily on the council’s ability to finance development projects.

One mandatory provision tied to tax recovery is enforced during municipal elections, where candidates are required to clear all property tax dues before filing their nominations. However, other revenue-generating measures, such as fee from No Objection Certificates (NOCs) for new water and electricity connections, have been discontinued, further affecting the council’s income.

Nirmal Kaur, Chairperson of the Paonta Sahib Municipal Council, stressed the importance of timely tax payments. “The Rs 14 crore in unpaid property taxes has made us excessively dependent on government grants. If residents and businesses pay their dues on time, the council can achieve financial independence and accelerate development projects,” she said.

The council’s current strategy focuses on incentivising compliance while educating residents on the importance of property tax. Planned awareness campaigns aim to inform citizens about how their contributions can improve local infrastructure and amenities. Experts have suggested that digitalising tax records, introducing stricter enforcement mechanisms, and maintaining transparency in tax collection could enhance recovery rates.