Demonetisation Augments Tax Revenue

The demonetisation move by the Government of India has proved to be a boon for the financial health of the Urban Local Bodies as within a few days, many municipalities have received huge sum of deposits in their accounts as people paid taxes against service rendered in old Rs 500 and Rs 1000 denomination currency notes

Prime Minister Narendra Modi surprisingly scrapped the highest denomination currency notes on November 8, 2016. This was a heart failing news for the unaccounted wealth owners but the Local bodies are happier than ever. The reason behind it is the acceptance of defunct currency in Municipalities and Municipal Corporations. Within four days time after the scrapping of notes, Municipalities are filling their revenue treasury by allowing payment property tax, water tax and other dues in out of circulation currency notes.

Civic Body of Navi Mumbai has collected more than Rs 16 crore since November 9, 2016. As per the data of Brihan mumbai Municipal Corporation (BMC), the body has received Rs 49.45 crore till 6pm on November 13, which is the second highest collection in the country. A senior government official from BMC said that citizens are now motivated to pay their taxes. “Most citizens stash a certain amount of cash at home. It is a win-win situation for both of the citizens and the civic body. People should take full advantage of the situation”. Besides that, Pune Municipal Corporation (PMC) and Kalyan- Dombivli Municipal Corporation (KDMC) were at the first and third position in the list with a collection of Rs 53.13 crore and Rs 24.15 crore respectively. Rs 14.88 crore in taxes are recovered by the Nashik Municipal Corporation (NMC) in just three days after the centre announced withdrawal P

Demonetisation Augments Tax Revenue The demonetisation move by the Government of India has proved to be a boon for the financial health of the Urban Local Bodies as within a few days, many municipalities have received huge sum of deposits in their accounts as people paid taxes against service rendered in old Rs 500 and Rs 1000 denomination currency notesof high denomination currency notes. More than 55% was deposited by cash according to the municipality officials.

In every financial year, the municipalities collect huge amount in June and July while November- December used to be a dry period for revenue generation. But this year outstanding increase in tax collection in the middle of the financial year has stunned tax officials. Maharashtra has a long list to be still counting, Cantonment Board of Dehu Road and Khadki have mopped up nearly Rs 27.4 lakh and Rs 10 lakh respectively since November 9. “Maharashtra Government is reaping all the benefits of the Central Government’s decision of demonetisation”, CM Fadnavis told the banks at a meeting to deploy mobile vans across the state for exchange of  old notes. He said that the government would support the deployment.

For defaulter’s safety and security!

Not enough! Officials will step into tax payers’ houses to collect Rs5 lakh or more taxes if they so request. Ulhasnagar Municipal Corporation (UMC) has launched this initiative for the easy collections of the property tax and water bill dues. Till November 14, UMC has netted Rs 17 crore dues. “Such property owners have to just send a message to the Municipal Commissioner and our team will visit the location and collect the dues. A receipt of the amount on the spot will also be given,” he says. Maharashtra ULBs have netted over Rs 650 crore till November 14, 2016. The time period for the collection of taxes with old currency notes has been extended till November 24, 2016. The targets for collection during this period are significantly high at Rs 1000 crore for Maharashtra. People are facing some problems in long serpentine queues outside banks, but demonetisation is boosting the finances of our Urban Local Bodies. Demonetisation may seem unfair for a few; but it is certainly helping support ULBs in their developmental works