The Solan Municipal Corporation is grappling with a severe financial crisis as only 50% of homeowners have paid their house tax. Out of approximately ₹10 crore expected revenue, the civic body has managed to collect only ₹5 crore so far.
In response to the low compliance, the Municipal Corporation has issued notices to approximately 7,000 homeowners, asking them to pay their dues. The city has around 14,000 house taxpayers, but more than half have yet to pay their taxes.
The notices also come with a warning: defaulters will incur an interest penalty of 1% per month on unpaid dues. This measure aims to encourage prompt payment and alleviate the ongoing financial strain on the corporation.
The house tax collection drive, which began in July, follows a ward-wise approach. While the process is complete in 16 wards, it is currently underway in Ward 17. Notices emphasize that unpaid dues will attract a 1% monthly interest penalty, and the corporation is considering stricter actions, including disconnecting water and electricity connections for persistent defaulters.
With its financial crisis deepening, the Municipal Corporation is relying on house tax as a vital revenue source. Officials hope that the stern measures, including penalties and possible utility disconnections, will prompt defaulters to fulfil their tax obligations and help stabilize the city’s finances.