Property tax: KMC to introduce graded waiver scheme
Kolkata: Kolkata Municipal Corporation (KMC) is introducing a graded waiver scheme in property tax collection from August 1 which will reduce the exorbitant rate of waiver in interest and penalty that the civic body has been offering.
The Kolkata Municipal Corporation has been offering a 50 per cent waiver in interest and 99 per cent in penalty against one-time payment of pending taxes, irrespective of the number of years for which the tax remained unpaid.
“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,” a senior official in Kolkata Municipal Corporation’s property tax department said.
According to sources, it has been decided that if a person coughs up tax pending for 2 years or less will get 99 per cent waiver in penalty and 50 per cent in interest.
If the period of pending tax is for 2 to 5 years, the penalty waiver will be 75 per cent and the interest waiver will be 45 per cent while if the tax is due for a period of over 5 to 10 years, the penalty will be waived by 50 per cent and the interest by 40 per cent. In case the pendency is beyond 10 years, the waiver in penalty and interest will be 25 and 35 respectively.
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.
“However, taxpayers who will be applying by July to clear their tax dues will continue to enjoy the facilities of 99 per cent waiver in penalty and 50 per cent in interest. So, those whose taxes are long pending should apply immediately to catch the bus,” the official added.
According to KMC sources, the ongoing waiver scheme started in 2018. However, the mopping of property tax by the KMC has not been upto expectations. Hence, the civic body has decided to opt for such a graded waiver scheme.
