KMC to soon alter its tax waiver scheme for defaulters

The Kolkata Municipal Corporation (KMC) has taken a decision to stop extending a uniform waiver percentage for tax defaulters and have instead decided to lower it according to the number of years one has defaulted on their property tax.

It was learnt that the decision will take effect from next financial year where the civic body will provide the exemption in specific cases only. It was learnt that several tax defaulters, despite the waiver of penalty and interest, continued to dodge taxes which had a direct implication on the treasury of KMC.

It has come to light that a decision has been reportedly taken that the civic body will alter its exemption scheme depending on the time period relating to tax dues. This will do away with the uniform rate that earlier applied.

According to the new decision, if taxes are due for two years, a waiver of 99 per cent of penalty and 50 per cent of interest. For ones who defaulted over two years but less than five years, will get 75 per cent exemption on penalty and 45 per cent on interest. For ones who defaulted on their taxes for five to ten years, they will get 50 per cent exemption on penalty and 35 per cent on interest. One who defaulted for more than 10 years will get only 25 per cent on penalty and 30 per cent on interest.

Ever since an exemption on default tax was introduced

in 2018 many had come forward to clear their arrears. However, a large percentage of defaulters haven’t. Hence, the civic body is learnt to have come up with the decision to lower the exemption rates with increasing time period.