The much hyped discount scheme aimed at easing the financial burden on citizens amid the pandemic, is doomed even before it could actually take off, as the Mira Bhayandar Municipal Corporation (MBMC) chief- Dr. Vijay Rathod has shot down the proposal offering 50 percent rebate on property tax in the current fiscal, leaving the BJP-rulers red faced.
Concerned over the financial implications on the civic body due to the huge waivers, the administration has sent the resolution to the government for scrapping.
“Yes, we have forwarded the resolution to the state government.” said Dr. Rathod. As per the resolution passed in a digital meet held on 13, August, those making payments on or before 31, October-2020 could avail the tax sops. It was also announced that interests on pending dues will be waived off if payments were cleared before the same deadline. However, from day one the administration was reluctant to implement the plan in entirety as it could translate into multi-crore losses for the civic body which was already staring at a huge financial crisis and the tax sops would further add to its existing woes.
This year the MBMC has projected property tax collections amounting 271 crore. However, revenue generation had hit rock bottom owing to the nationwide lockdown.
“We are slowly picking up. As of now we have collected around 75.49 lakhs from 15,202 taxpayers which include 8,289 people who opted for online payments. If implemented the relaxations are bound to drain a major chunk of anticipated revenue from our demand registers.” revealed a tax officer.
“We passed the resolution, to ease the financial woes of citizens. The civic chief had to take a final call.” said, Mayor Jyotsna Hasnale Meanwhile the bill distribution and recovery is paralyzed as most of the tax personnel are engaged in Covid-19 survey work. Faulty assessments, triple penalties and ghost entries are the major components of pending arrears.