Incentives for Gurugram RWAs For Property Tax Collection
The Municipal Corporation of Gurugram (MCG), whose revenue generation has taken a severe hit due to the lockdown, has introduced an incentive system for RWAs and ward committees if they help with property tax and fire tax collections in their respective areas. As an incentive, the corporation will give 5% of the total property tax collected in the area — with a cap at Rs 50 lakh forward committees and Rs 5 lakh for RWAs — for waste management work. There are, however, conditions; MCG will give the incentive only if collections reach 80% of the total property tax due in an area. “The scheme will be applicable for only those RWAs and ward committees where the number of properties is more than 500 units. The incentive amount will be transferred to ward committees/RWAs for meeting expenditure on solid waste management projects in their area,” as per the order issued by the MCG commissioner Vinay Pratap Singh. From April 1 to July 24, MCG has collected only Rs 48 crore as property tax. The estimated revenue from property tax for the 2020-21 fiscal year is Rs 500 crore. MCG officials said it would be acceptable if the corporation was able to achieve even 50% of this target, considering the strains the pandemic had put people under. So far, the corporation has issued 1,600 notices to defaulters with property tax dues of more than Rs 5 lakh.
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