People maybe having a tough time due to scrapping of high value currency notes, but the cash-strapped municipal bodies across the country have had the last laugh with their property tax coffer swelling by 268 per cent to Rs 13,192 crore till November 22, 2016, compared to Rs 3,607 crore last month in 2015.
People paid property tax in old denomination notes of Rs 500 and Rs 1,000 following demonetisation of the two legal tenders announced by Prime Minister Narendra Modi on November 8.
Urban Development Minister Venkaiah Naidu termed it as a positive impact of the demonetisation and said that urban local bodies have been benefitted a lot due to the move.
“This is the reformative step undertaken by the Prime Minister that has financially strengthened the local bodies,” he said at a Press conference here on Tuesday. The figure is likely to jack up further as residents are allowed to pay taxes in demonetised currencies till November 24.
According to the data provided by the UD Ministry, NDMC in Delhi netted over Rs 30 crore in form of property tax and conversion charge paid by property owners in demonetised high value bank notes. last year, the NDMC had garnered Rs 21 crore.
The three corporations of South Delhi, East Delhi and North Delhi which have been always struggling to collect outstanding taxes is witnessing long queue of tax payers. The municipal bodies are accepting property tax dues and conversion charges in defunct notes, as directed by the Central Government.
North MCD collected Rs 18.8 crore (Rs 1.7 crore in November 2015), East MCD Rs 7 crore (Rs 2.6 crore) and South MCD garnered Rs 16.5 crore against Rs 2.2 crore last year in November. Amid demonetisation of high value currency, Mumbai Municipal Corporation saw multifold increase in its tax revenue to Rs 11,913 crore from the people as property tax in a span of just 13 days. last year during November the collection was Rs 3,185 crore.
The municipal bodies in the Southern parts of the country too fared well because of the demonetization. The property and professional tax collection for Chennai municipal body rose to Rs 80 crore post demonetisation against Rs 24 crore during November last year. Almost all the municipal corporations in Gujarat reported hike in property tax revenue. The Nagpur Municipal Corporation, collected property tax of Rs 25 crore till November 22, 2016 as against the last year November collection of Rs 4.9 crore. Rajkot Municipal Corporation reported Rs 34.27 crore while Vadodra has netted Rs 19.2 crore (4.9 crore).
lucknow Municipal Corporation too reported huge surge in tax income at Rs 27.5 crore till November 22, 2016 against Rs 2.5 crore in November last month.