MC imposes 5% penalty on property tax defaulters

Taking a firm stance against property tax defaulters, the Shimla Municipal Corporation has decided to levy a 5 per cent penalty on approximately 4,500 building owners who have failed to pay their dues.

The corporation had initially extended the deadline to July 31 due to election duties for 80 per cent of its employees during the Lok Sabha elections earlier this year. Generally, property tax bills are issued in April, followed by a 30-day payment window, with a 10 per cent rebate for timely payment.

Despite reminders, these property tax bills remain unpaid, leading the corporation to impose fines as per municipal regulations. Joint Commissioner Bhuwan Sharma stated that revised bills with the 5 per cent penalty have already been issued to defaulters. He emphasixed that failure to respond to three notices from the Corporation could result in disconnection of electricity and water supplies.

With around 31,000 building owners in Shimla liable to pay property tax, approximately 2,000 have defaulted for over a year, including several prominent hoteliers and the Interstate Bus Terminus at Tutikandi. The Shimla Municipal Corporation has thus intensified its efforts to ensure timely tax compliance, considering the revenue critical for civic infrastructure and services.