NMC waives tax on homes measuring up to 500 sq ft

16 Feb 2022 CW Team

The Nagpur Municipal Corporation (NMC) has decided to provide tax exemption to housing properties measuring 500 sq ft and below.

The move is likely to help more than 2.5 lakh property owners but cause a loss of Rs 120 crore to the cash-strapped civic body. On January 5, the media had reported regarding NMC’s property tax consultative committee’s decision to suggest the exemption on the lines of Mumbai.The bid was tabled before the general body on Tuesday.

NMC deputy commissioner Milind Meshram told the media that there are likely more than 2.5 lakh properties of 500 sq ft and below.The yearly demand for these properties is about Rs 30 crore per annum. Additionally, there is an arrear of Rs 90 crore on these properties.Ruling party leader Avinash Thakre recommended execution of the advantage to qualified persons from January 25.

Arrears of Rs 90 crore indicate they are unable to pay the tax. Losing an income of Rs 30 crore per annum will not make any difference to NMC. They can easily manage this by bringing new income sources. Dharampal Meshram, corporator from Thakre’s party, disagreed with the latter’s suggestion.

The NMC administration must first study whether the government would pay the income loss in the case of Mumbai.They must demand reimbursement from the government. He said that there is a possibility a few houses in slum areas do not get the advantage.

Few shanties have an area of more than 500 sq ft. Such persons are not qualified to pay taxes. Some standards should be set to extend the advantage.

Thakre told the media that a proper team should be created to execute and give orders to the government. According to NMC’s data, there are approximately 6.5 lakh properties in the city, which means 38.5% are expected to benefit.

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Also read: NMC passes resolution for property tax exemption up to 500 sq ft

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