100% waiver on the interest of property tax dues: KMC

100% waiver on the interest of property tax dues: KMC

There is a total due of Rs.3500crore on property taxes. The Kolkata Municipal Corporation (KMC) has provided the 100% waiver on the interest outstanding taxes from August. This offer is valid for six months as per the guidelines of KMC.

Previously, the defaulters got the waiver of 50% on the interest of property taxes which was yet to be paid to the Kolkata civic body. But now, the KMC has taken a berserk step for the compensation of revenue tax loss which was faced during the lockdown session, and hence the civic body has decided to make the full waive of interest on property taxes to provide the relief to the defaulters for making their payments easy.

The draft of such provisions has been made and sent to the state government for approval as per the statement of the KMC assessment department official. The board of administrators runs the KMC administration who has given the positive signals on such provisions when it comes toward the headquarters of KMC. As per the records, there are more than 400 defaulters under KMC worth Rs.1500crore among Rs.5lakh odd assessed payers.

One of the officials stated in his comments that the 100% of the waiver on the interest which is maybe applicable for six months but after the situation comes under control, the previous provision will be applicable which 50% waiver on the interests. One of the officials said that this 100% waiver scheme has been introduced to clear the dues of contractors to maintain the regular important services by avoiding hurdles.

One of the KMC assessment department officials said that this scheme of waiving interest will help them to carry on the essential services which should not be stopped due to any obstacles. This scheme will help the defaulters to pay the taxes which they have not paid yet. There is a need for Rs.500crore for compensating and clear the dues of contractors.

In 2012, the KMC had introduced such a similar scheme by waiving such interest to provide fund for the infrastructural projects of the city. Though there are some limitations in providing such schemes. The regular and habitual defaulters will not pay their pending payment time as they will wait for the schemes which will be provided by the civic body. In this way, the civic body may face some losses in collecting taxes. 

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By LNN (Liyaans News Network)