Aurangabad civic body likely to waive 75% penalty on property tax


The general body of Aurangabad Municipal Corporation is all set to discuss and waive 75 per cent of penalty on property tax dues, which scores of residents owe to the civic body.

The municipal commissioner has proposed a special amnesty scheme to waive off the penalty if the property holders come forward to settle all their duess.

The general body had earlier in 2015 passed a resolution directing the civic body administration not to charge penalty on delayed payment of property tax. However, the then municipal commissioner had opposed the move saying that if the penalty was waived, it would cause a loss of Rs 22 crore to Rs 25 crore to the civic body and that the tax payer would assume that they don’t have pay taxes in time.

However, the current municipal commissioner said in his proposal that amnesty scheme of 75 per cent waiver in penalty may encourage property holders to come forward and pay their dues. Due to which he has given a last-minute proposal to this effect, said civic body sources.

They pointed out that two per cent penalty or delayed charges are being charged from the defaulters. However, if the property holders availed the amnesty scheme, the civic body was expected to collect Rs 252.36 crore. The property owners collectively owe a total Rs 342.96 crore to the corporation including Rs 120.80 crore under the head of penalty.

According to sources, the state government has made it mandatory for the civic bodies to achieve 90 per cent property tax recovery target. The civic body has been able to recover just Rs 89.35 crore so far.

The administration proposal has also pointed out the state government communication which suggested measures to charge penalty and tax on open spaces too. The sources said that the general body would approve the proposal in the light of the government guidelines to this effect.

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