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Chandigarh MC recovers only ₹25 lakh of total ₹87 crore property tax from govt departments

Only 19 out of total 240 government buildings have cleared their dues.

Updated: Sep 10, 2018 17:02:28

By Vivek Gupta

The civic body is blamed for being biased towards the government departments as compared to private sector, in terms of tax collection. (HT FILE)

In response to the property tax notices by the municipal corporation, the recovery of the amount from the government departments has been slow as compared to the private properties.

The civic body, in the past four months, has issued notices worth ₹87 crore against 240 government buildings, majority of which are under the ambit of the Chandigarh administration. But the property tax recovery so far has been only ₹25 lakh, reveals the figure of the tax branch. Only 19 buildings so far have cleared their account, while other departments are checking their records in response to the MC notices.

Compared to this, 291 private institutional buildings were sent tax notices worth ₹13 crore and the MC has already recovered ₹5 crore.

The MC has received counter claims of ₹5 crore from government departments where they have claimed that they have paid the tax in the past.  



‘MC should treat all equal’

Many pinned the blame for slow recovery of tax on the soft approach of the MC on the government departments. Baljinder Singh Bittu, president of Federation of Sector Welfare Associations (FOSWAC) said “The MC does not think twice sending attachment notices to the private properties.”

Sealing proceedings were started against two showrooms on the Madhya Marg but there is not even a single example where a government department is put on attachment notice for failure to pay.

“If the MC is serious about recovering property tax dues and increase its revenue, they should treat everyone equally,” he said. Property tax was introduced in 2004 but the MC has been tardy in recovering the dues from the government departments. As a result, the pendency of arrears have piled up to crores of rupees now.

‘MC targeting ₹50 crore this fiscal’

MC additional commissioner Anil Garg said he can’t comment on what has happened in the past but the MC was serious on recovery of each and every penny from all those who are liable to pay the tax.

Last year we collected ₹42 crore tax in comparison to tax collection of ₹20 crore in 2016-17 fiscal year. “We are now targeting a minimum of ₹50 crore collection as there is a huge pendency of tax arrears on the government and private properties,” he said.

First Published: Sep 10, 2018 17:01:01

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