In a recent development, the Lucknow Municipal Corporation [LMC] gave approval to one-time settlement (OTS) scheme. The property and water tax defaulters in the city will get relief under this scheme as they will be offered a rebate of 20% on the principal amount. In continuation to this, the interest will be waived off in case the defaulter pays complete outstanding dues by April.
However, the defaulters paying the same in May will be offered a rebate of 10 percent.
Similarly, the Government departments falling in the defaulters list will get a rebate of 20% in case they make payment of the same by May and interest will also be waived-off. The departments will get a rebate of 10 percent till August.
In the records of Lucknow Municipal Corporation, there are nearly around 5 lakh taxable properties and their owners are yet to clear their outstanding dues from the past six years.
Out of these nearly are 4.8 lakh houses, 19,092 shops, 324 educational institutes and hostels and 1,338 government establishments. The total amount overdue on these properties costs approximately Rs. 790 crore. The lower collection of tax results in generation of less revenue.
The Lucknow Municipal Corporation estimated to generate a revenue of Rs. 280 crore in 2016-17 but received Rs. 192 crore. Similarly, the LMC estimated collected Rs. 178 crore in 2017-18 and Rs. 174 crore in 2018-19.
Indramani Tripathi, Municipal Commissioner said that many defaulters don’t pay tax for years because of legal dispute. Thus, the tax keeps piling up for years and people don’t pay the tax even after the issue is resolved stating that they don’t have money to clear tax. However, this scheme will encourage the defaulters to clear the outstanding dues.
He also said that we have given more time to Government agencies as they are required to take approval from the senior authorities to make payment and this sometimes takes more time than usual.
Municipal Commissioner also said that a 10 percent rebate is already offered to the taxpayers who are regular at paying the tax amount.