PMC starts levying penalty interest which will rise to 100 per cent from January 1, 2023; urge citizens to pay bills first to avoid rising penalty
A number of residents are awaiting a court order. Representation pic
The Panvel Municipal Corporation has managed to collect only around Rs 170 crore as property tax against the proposed target of Rs 1,000 crore since October 1, 2016, as a majority of the residents are not paying the same and are waiting for a court order in the matter. The Bombay High Court had recently allowed a writ petition of Kharghar Forum to be converted into a Public Interest Litigation. The civic body has now started levying interest on default payment on the tax, applied retrospectively since 2016, as per slabs and will start levying 100 per cent penalty from January 1, 2023.
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Deputy Municipal Commissioner (Property Tax) Ganesh Shete said, “We had a target to collect a consolidated amount of Rs 1,000 crore from property tax, but could only collect Rs 170 crore. Property tax is the only major source of revenue for the corporation, and the funds will be required for providing various civic infra structures such as local municipal ward offices, urban municipal hospitals, etc.”
Also read: Mumbai: Now, get ready to pay property tax for 2019-2020
“So far10-15 per cent of the residents have cleared their dues. PMC had also given discounts encouraging people to clear the dues, but as some residents’ association had approached the court, refrained from paying their property. The court, however, has not issued any stay order, so we continue to issue bills,” he said.
Speaking on penalty, Shete said, “We must understand that property tax, if not cleared, attracts a monthly interest of 2 per cent. We have started levying interest on default payment, but have given some concession on interest, such as we are levying only 50 per cent of the interest due on property tax bill from August to September-end which will be increased to 75 per cent from October 1 till December 31. However, from January 1, 2023, 100 per cent interest will be levied.”
PMC stand
Shete added, “PMC, through its advocates, has cleared its stand before the Bombay HC stating that there is a provision under section 406 of Maharashtra Corporation Act, 1949, where appeal on taxation can be made before the district court, and such an appeal is possible after all dues towards property tax are cleared by the litigants.
Vote bank politics
Meanwhile, with PMC elections slated in the next two months, some residents’ associations have started door-to-door campaigns, hoping that the chief minister may intervene and stop retrospective levying of property tax from 2016 instead of 2019.
Mangesh Ranawade, chairman of Kharghar Taloja Colonies Welfare Association, said, “We are now in the process of conducting an online and a door-to-door signature campaign and have collected 4,000 signatures so far.”
“We will soon be meeting CM Eknath Shinde and submit the signatures. With the approaching PMC polls, Vidhan Sabha graduate and teachers constituency election in 2023 and Loksabha elections in 2024, we are sure the CM will pay heed to our plea. Our only demand is that property tax cannot be levied retrospectively from 2016, and instead should be levied from 2019 when CIDCO nodes were made a part of PMC. Our taxes prior to 2019 were paid to CIDCO, and we should not pay tax twice to two different authorities,” he said.
Not paying not a remedy
Mangal Kamble from Swach Kharghar Foundation said, “Property tax is a key source of funds for municipal authorities. We have been advising citizens to pay taxes timely. By holding back payments, citizens have lost the benefit of discounts, and moreover interest for delay is also getting levied now. Once the court decision comes in and is in favour of billing duration reduction, then all citizens stand to benefit. Our stand is to pay the bills and continue to fight for justice.”
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