Rs1600 crore is what Amdavadis owe civic body in property tax

Amdavadis owe almost half of the amount of Ahmedabad Municipal Corporation's (AMC) budget for 2011-12 towards property tax. The total outstanding property tax has reached Rs1,600 crore. As incentives, the civic body has also introduced interest rebate scheme on property tax payment.

The civic body's property tax demand has reached Rs1,600 crore, which also includes Rs550 crore as interest. Meanwhile, the property tax dues under new formula implemented from 2001 onwards has increased when compared to old formula dues.

The civic body needs to recover around Rs700 crore from residents under the new formula, while dues under the old formula stands at Rs445 crore, said Arjav Shah, deputy municipal commissioner of tax department.

The current year's demand of property tax stands at Rs440 crore, against which, the civic body has recovered only Rs180 crore from
city's five zones till now.

"Property tax bills are yet to be distributed in the new west zone and the task will be completed next week," said Shah.

The civic body introduced the interest rebate scheme on Thursday.
The standing committee passed the resolution to this effect giving 100% interest rebate on scheme for slum dwellers and residents of chawls, while 50% for others, excluding closed mills,
on payment of full taxes.

"Some of the residents did not have money to pay property tax dues under the new and old formulas, so interest rebate will be available on complete payment of dues under old formula or new formula," said Shah.