The Municipal Corporation of Shimla is set to introduce a new property tax system from April, offering relief to thousands of building owners in the city. Under the revised system, tax bills will now be calculated on a daily or monthly basis, instead of only for the entire financial year.
This move will benefit those who buy or sell property mid-financial year, as well as building owners whose constructions are completed towards the end of the year. Currently, if a building is completed in December, the owner is required to pay tax for the full financial year starting in April, resulting in significant losses. The new system will ensure that such owners pay tax only for the period from December to March, saving them from eight months of additional burden.
Municipal Corporation Commissioner Bhupendra Atri said software is being developed to implement the new system, which will be operational in the city from the coming financial year. “This will not only benefit the public but also increase the corporation’s revenue,” he added.
The corporation, which collects property tax from 31,600 building owners in Shimla, believes the change will also streamline taxation for the growing number of property transactions in the city. Hundreds of properties are bought and sold annually, and under the new system, taxes will apply only for the duration of ownership during the financial year.
Meanwhile, the Municipal Corporation is tightening its grip on tax evasion. Officials are conducting door-to-door surveys to collect data on building sizes and usage. Notices will soon be issued to owners found evading taxes. According to officials, around 8,000 people in the city have yet to pay their taxes for this financial year, despite bills being issued. If dues remain unpaid beyond October 31, a five percent penalty will be levied.
The corporation currently offers a 10 percent discount for those who pay their property tax within 15 days of receiving their bill, a concession that will continue under the new system.
