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You get tax cut, Ahmedabad Municipal Corporation gets Rs10 crore

Civic body’s new scheme giving citizens rebate in property tax has its coffers overflowing in just six days.

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The Ahmedabad Municipal Corporation (AMC)'s new scheme that allows citizens to avail a rebate on property tax even when the due tax is paid in installments is a big hit with Amdavadis.

Since the implementation of the new scheme from March 13 onwards, the AMC officials have collected Rs10.5 crore by way of pending property tax in six days.

The AMC officials said that more people should take advantage of the scheme as it will allow them to get exceptionally good discount in settling their pending property tax.

Earlier, the tax payers had to completely clear their accounts to claim a rebate. But now, the civic body allows them to pay the tax in three installments before September 30, 2010.

Which means, if you have Rs10,000 as pending property tax and Rs 4,000 as interest to be paid on it, you can pay the former in two installments of Rs 5,000. The interest can be paid in installments of Rs2,000 each. "As per the scheme, citizens can get 50% discount when they pay 50% of the pending interest on tax. This means a citizen will have to pay just to Rs1000 (50% discount of Rs2000) by way of interest on tax," said deputy municipal commissioner Arjav Shah.

He said that since the scheme was launched their collection has gone up. Earlier, the civic body's average daily income was Rs1 crore which has gone up to Rs 1.75 crore in the last six days.
For the month of March, the AMC officials have so far collected Rs18.49 crore in the six zones of the city and Rs317 crore (without education cess) from April 2009 to March, 19, 2010. "We aim to collect Rs425 crore and we need the citizens' co-operation for that," said Shah.

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