The Municipal Corporation (MC) Shimla has launched a stringent crackdown on property tax defaulters, disconnecting the electricity and water connections of over 400 households. The civic body revealed that more than 5,000 building owners owe over ₹6 crore in unpaid taxes, a significant hurdle in its revenue collection efforts.
Shimla MC official confirmed that repeated notices had been ignored, prompting this tough action. “We appeal to residents to clear their dues immediately to avoid further inconvenience,” he added. The disconnection drive has already begun, with more notices expected to follow.
The Interstate Bus Terminus (ISBT) in Tutikandi has emerged as one of the major defaulters, owing a staggering ₹6.33 crore in property taxes. In response, the MC has decided to disconnect its water and electricity connections, reinforcing its determination to recover dues from even high-profile establishments.
Property Tax Evasion Remains a Challenge
Shimla has around 31,000 buildings, and property tax forms a critical part of the MC’s revenue. Evasion remains rampant despite provisions like a 10% rebate for timely payments and penalties for late submissions. This has severely impacted the corporation’s ability to fund essential services and development projects.
The MC’s aggressive recovery measures come at a time when it is grappling with a severe financial crunch. Experts highlight the corporation’s over-reliance on government grants as a major concern, with internal revenue generation failing to meet growing demands. This dependency has hindered the completion of projects related to waste management, road maintenance, and water supply.
To address the crisis, the MC is focusing on stricter enforcement of property tax payments while exploring ways to diversify its revenue streams. Officials have acknowledged that systemic inefficiencies must be resolved to ensure sustainable financial health for the city.
The Municipal Corporation’s efforts are a step toward restoring fiscal discipline, but achieving long-term stability will require both residents and institutions to comply with tax norms. As the crackdown continues, Shimla MC aims to set a precedent for timely tax payments, ensuring uninterrupted civic services and development.
