Bhubaneswar: Dismal holding tax collection worries BMC, to hold Saturdays as revenue day

An ever-decreasing property tax collection by the Bhubaneswar Municipal Corporation (BMC) has put a dent in the revenue of the civic body.

While the BMC Commissioner had directed the tax collectors to focus more on holding tax collection in the current fiscal year, the recent standing committee meeting has revealed that BMC’s monthly tax collection is not touching even Rs 70 cr.

As per reports, the BMC has collected a total tax of Rs 67,63,29,165 in the month of October 2023 which included Rs 1,85,97,761 from holding tax or property tax.

In the recent standing committee meeting, it was decided to observe every Saturday as Revenue Day in the BMC to encourage tax collectors to work more diligently in collecting taxes.

Standing Committee Chairman, Kumarendra Mohapatra said, “The revenue has decreased after the BMC gave ward responsibility to the tax collectors. In the last standing committee meeting, it was decided that new ward officers will be outsourced so that the tax collectors can concentrate only on tax collection.”

“We plan our annual budget according to the tax collection from various sources including the holding tax. We are trying to increase our holding tax collection so that our total income increases,” said BMC Mayor Sulochana Das.

Property tax is a tax paid on property owned by an individual or other legal entity, such as a corporation. Most commonly, property tax is a real estate ad-valorem tax, which can be considered a regressive tax. It is calculated by a local body where the property is located and paid by the owner of the property.

It is pertinent to mention here that the BMC has done away with the offline mode of receiving the payment of taxes since August last year. Apart from the online payment facility, the civic body has also made provision for payment of the tax in digital mode in ward offices.