BMC boss directs staff to get tough with defaulters

MUMBAI: Municipal commissioner Subodh Kumar has directed assistant commissioners of all 24 administrative wards and the assessor and collection department to take a tough stand against property and water tax defaulters.
Civic officials have also been told to ensure that the target estimate for property tax collections is doubled this year as compared to last year's collection.
The focus this year will be on more water tax and property tax collections, , in the financial year 2011-12, in a bid to increase the revenue by 100%. As of March 2011, the property tax collection as of March 2011 as Rs 2,210 crore, way below the estimated Rs 2,815 crore. Approximately Rs 7,000 crore in pending dues is yet to be recovered by the Brihanmumbai Municipal Corporation (BMC) as of March 2011.
Patil, deputy municipal commissioner (tax reforms), said, "Earlier, we used to keep a target which was recoverable. Now, the target estimate will be increased as per the demand. The BMC chief said that the target was lower than the demand. We were also deducting the amount which is locked up in court cases. Until the court gives directives, we can't collect those taxes."
Patil said that Kumar plans to utilize the revenue collected from property and water taxes for major works on the sewage system, water mains and stormwater drain network. The assistant commissioners will play an mostly administrative role to ensure that tax is collected.
All defaulters who have not paid the provisional property tax bills will be sent notices. The civic body hopes that attachment notices will make defaulters pay their pending bills because if they fail to do so within 21 days, their property will be auctioned. Once the deadline for the payment of tax expires, the defaulter will be sent a reminder notice called the notice of demand under Section 212 of the BMC Act.
For meterless water connections, a water tax will be levied by the BMC's hydraulic department.
In the amended law that was passed by the legislature, under section (212) of the BMC Act, a reminder notice called the Notice of Demand will be given to the taxpayer after the deadline for the payment expires.
For un-metered water connections, there will be a water tax levied by the BMC's hydraulic department.
"Earlier we kept the target which was normally recoverable. Now, the revised target estimate will be increased as per the demand. The municipal chief stated that the target was lower than the demand. We were also deducting the amount locked up in Court cases. Till the Court gives directives, we cant collect those taxes," said Prakash Patil, deputy municipal commissioner, tax reforms.
There is a difference of approximately Rs 7,000 crore pending dues as of March 2011, to be recovered by BMC.
Civic officials have also been advised to ensure that the target estimate of property tax be doubled, as compared to last year's collection.
The focus will be on more water tax and property tax collections, in the financial year 2011-12, to increase the revenue by 100%.
The property tax collection as of March 2011 was Rs2,210 crore, way below the tax estimate - Rs2,815 crore. There is a difference of approximately Rs 7000 crore pending dues as of March 2011, to be recovered by BMC.
"Earlier we kept the target which was normally recoverable. Now, the revised target estimate will be increased as per the demand. The municipal chief stated that the target was lower than the demand. We were also deducting the amount locked up in Court cases. Till the Court gives directives, we cant collect those taxes," said Prakash Patil, deputy municipal commissioner, tax reforms.
Patil said that Kumar wanted to utilise the revenue collected from property and water taxes, for major works on sewer network, water mains and storm water drain network.
While assistant commissioner will play an administrative role in this, all defaulters who have not paid the provisional property tax bills will be sent notices.
The civic body hopes that attachment notices will make defaulters pay their pending bills because if they fail to do so within 21 days, their property will be auctioned.
In the amended law that was passed by the legislature, under section (212) of the BMC Act, a reminder notice called the Notice of Demand will be given to the taxpayer after the deadline for the payment expires.
For un-metered water connections, there will be a water tax levied by the BMC's hydraulic department.