To give some relief in ongoing financial crisis caused due to Covid-19 pandemic and full lockdown, municipal commissioner Radhakrishnan B on Monday announced ‘Abhay Yojana-2020’. Citizens will get 80% waiver on interest if they pay property tax dues till 2020-21 between December 15 and January 14, 2021. The waiver will be reduced to 50% if paid between January 15 and February 14.
Radhakrishnan and standing committee chairman Vijay Zalke are likely to announce similar scheme for water bills on Tuesday.
As per Maharashtra Municipal Corporations (MMC) Act, the civic chief has power to waive off entire interest as well as penalties on property tax. However, Radhakrishnan has announced 50-80% waiver of interest on property tax.
“Full lockdown implemented to control Covid-19 caused an impact on financial condition of the people. Therefore, public representatives and taxpayers requested waiver of interest. People have to pay total arrears up to March 31, 2020, and current demand of 2020-21 to avail the scheme,” Radhakrishnan said.
The demand got some momentum when BJP started to demand waiver in power bills from the state government.
Taxpayers who do not owe arrears up to March 31, 2020, and have failed to pay current fiscal’s tax before December 31 will also be eligible for the scheme. Such taxpayers will not have to pay interest of 2% per month if they pay before February 14. The taxpayers will not get the benefit if they are paying part amount.
Usually, interest of 2% is applicable if tax is not paid on or before December 31.
NMC is updating its payment gateway system so that people can take advantage of the scheme even while paying online. NMC’s system will calculate and display total arrears with 20% of total interest automatically if anyone pays between December 15 and January 14. It will calculate total arrears with 50% of interest between January 15 and February 14.
The civic body will also waive off fees levied on some taxpayers for attaching properties and expenditure incurred for recovering tax.
In case of sub-judice matters, taxpayers will have to give in writing, assuring to withdraw the case, to avail the scheme. NMC has warned it will recover the exempted amount in case beneficiary again defaults on property tax or challenges the scheme or benefits in any court of law.
Similar amnesty scheme for water bills and property tax was launched in July-August 2017 but received a dismal response.