Kolkata: In a bid to retrieve property tax dues, the Kolkata Municipal Corporation (KMC) is mulling a waiver scheme to encourage people to pay up in a order to avail certain incentives.
The civic body is largely dependent on property tax for its revenue generation.
However, a big amount of tax is yet to be retrieved by KMC to fill up its coffers. The dues have led the civic body reeling under a crunch which is affecting its services to the citizens.
Hence, the KMC is now planning to waive off the accrued interest on dues and remove penalty for those that clears their dues within a specific period of time.
The matter was discussed at the civic body headquarters where deliberation has led to this plan. The assessment department is said to have suggested that property tax defaulters who clear their entire dues within two years be allowed to avail a 50 per cent interest waiver and 99 per cent penalty waiver on the due amount.
It was also suggested that if the defaulter fails to clear the entire outstanding amount of tax in less than five years, the taxpayer may only avail 45 per cent waiver on interest and 75 per cent on penalty.
The waiver percentage will further reduce for ones who will clear it after five years. In such a case, only 35 per cent on interest and 50 per cent on penalty will be offered. Also, ones who will fail to clear it within 10 years or more, will only get to avail a mere 30 per cent waiver on interest and 25 per cent on penalty.
The proposal was discussed both with Mayor Firhad Hakim and the municipal commissioner. However, civic body sources are of the opinion that the majority pay their taxes on time and only about four to five per cent are defaulters.