Demonetisation effect: Maharashtra civic bodies hit Rs 1,400cr jackpot

Updated: Dec 07, 2016, 09:53 IST | Sanjeev Shivadekar |

With defunct notes being accepted as payment for taxes and penalties, defaulters and civic bill payees scrambled to settle dues in the first two weeks post demonetisation

Taxing times for the nation are a windfall for the taxmen. In just the first 12 working days since November 8, demonetisation has helped the state’s 238 municipal corporations and councils mop up a collective tax revenue of around Rs 1,400 crore – an average collection of nearly Rs 116.60 crore per day.

Defunct Rs 500 and Rs 1,000 notes were accepted as payment for taxes and penalties of state and central government bodies. There is no clarity on whether the deadline for use of such defunct notes to pay water and property taxes has been extended.

The Brihanmumbai Municipal Corporation (BMC) topped the tax collection, with citizens paying property taxes and other civic bills of around Rs 480 crore with defunct notes.

A rush at the Ulhasnagar Municipal Corporation office where people lined up to pay their property taxes. FILE PICA rush at the Ulhasnagar Municipal Corporation office where people lined up to pay their property dues. File Pic

“We have not scrutinised the list [of tax/bill payees]. But, some defaulters must have paid in partial or in entirety,” said a senior BMC official from the assessment and collection department, which collects property tax.

Sources said  over 100 tax defaulters owed the BMC more than R1 crore each.

People queue up outside Mira Bhayander Municipal Corporation to settle their dues. File Pic

According to rough estimates, around Rs 1,240 crore was deposited in municipal corporations and nearly R160 crore in municipal councils in 12 working days since November 8.

A senior official from the state urban development department concurred that demonetisation helped civic bodies hit a jackpot. “It facilitated the recovery of a large chunk of the dues. Many defaulters settled their dues with old high denomination notes.”

Revenue collection

BMC - Rs 489cr

Pune Municipal Corporation - Rs 144cr

Mira Bhayander Corporation - Rs 70cr

Kalyan Dombivli Corporation - Rs 60cr

Thane Municipal Corporation - Rs 51cr

Vasai Virar Corporation - Rs 27cr

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