New KMC tax waiver scheme replaces old regime from Aug

Kolkata: With the old uniform tax waiver scheme of the Kolkata Municipal Corporation (KMC) ceasing to exist from this month, a new graded waiver scheme has come into being which is calculated according to the number of years one has defaulted on their property tax.

KMC sources said: “There has been discontentment among a section of tax-payers about uniform waiver in penalty and interest being offered by the Kolkata Municipal Corporation for those who have been defaulting for a longer period and for those whose dues are pending for a considerably lesser period of time. So, we have decided that those defaulting for a lesser period will be entitled to a heftier waiver. The maximum limit of interest that will be waived will be 50 per cent”.

The civic body so far used to extend a uniform waiver percentage for tax defaulters but now this will depend on the number of years one has defaulted on their property tax.

According to the new decision, if taxes are due for two years, a waiver of 99 per cent of penalty and 50 per cent of interest will be applicable. For ones who defaulted over two years but less than five years, will get 75 per cent exemption on penalty and 45 per cent on interest.

For ones who defaulted on their taxes for five to ten years, they will get 50 per cent exemption on penalty and 35 per cent on interest.

One who defaulted for more than 10 years will get only 25 per cent on penalty and 30 per cent on interest.

The KMC had plans to introduce this graded waiver scheme with effect from the beginning of 2024-2025 fiscal but with the Model Code of Conduct (MCC) coming into effect with the announcement of Lok Sabha elections, the plan was postponed.

Ever since an exemption on default tax was introduced in 2018 many had come forward to clear their arrears. However, a large percentage of defaulters haven’t. Hence, the civic body is learnt to have come up with the decision to lower the exemption rates with increasing

time period.