NMC nets windfall as ‘Gabbar Singh’ move a super hit, property tax realisation jumps to Rs 85 crore
   Date :01-Jul-2025

Nagpur Municipal Corporation property tax
 
 
Staff Reporter :
 
Using the image of Bollywood icon, civic body reached out to property owners urging them to pay dues by June end to get 15 per cent rebate for on-line payment and 10 per cent in off-line mode
 
At end of first quarter of financial year, civic body reported about rise of about Rs 15 cr in collection compared to last year 
 

tax chart 
 
Gabbar Singh ‘analogy’ seemed to have hit the nail, atleast for Nagpur Municipal Corporation (NMC) as, at the end of first quarter of the financial year, property tax collection figures showed a robust increase. Compared to last year, when the civic body accrued roughly Rs 73 crore till June 30, in current financial year 2025-26, the collection is likely to reach Rs 85 crore, said Milind Meshram, Deputy Commissioner, Revenue. Officials encashed Gabbar Singh’s image to impress upon citizens to take advantage of handsome rebate in prompt payment of property tax in the first quarter.
 
The target set in civic budget for property tax mop-up was Rs 325 crore, which senior officials said was quite achievable and added there was still scope for significant increase in the collection. This year, the entire machinery was spared of other tasks and hence, there is significant rise in collection, he added. The importance of first quarter revenue is not lost on the administration as it shows the inclination of citizens towards their duty. An underlining fact of payment of property tax till June 30 is that NMC offered 15 per cent rebate for payment made through on-line mode. About 10 per cent concession in local tax is provided on the spot in case of payment done in physical mode at the NMC tax counters in the 10 zones of city.
 
Till June 29, the tax counters were still open on last day of the first quarter, number of properties on which NMC realised tax also increased from 1,58,452 in 2024 for the same period to 1,85,379 in 2025. The total tax collection realised was Rs 80,68,62,411 for current year as against Rs 73,13,43,494 for 2024. At the end of the day, Meshram said, they expect to collect further Rs 5 crore as there was huge rush at counters in zone as citizens did not want to miss out on the offer period. From the start of financial year, the tax officials decided to leverage Gabbar Singh’s popularity, not to scare the taxpayers but to inspire the citizens to take advantage of 15/10 per cent rebate scheme. And the scheme seems to have worked for sure as rise in tax collection provides some cushion for NMC. At the end of the first quarter, the rebate offered reduces to 10 per cent for on-line payment and therefore, civic officials often encourage property owners not to miss the deadline of June 30.
 
A 15 per cent rebate is quite good as NMC has not revised the base rate of property tax for almost a decade, while in market, the rentals have increased manifold, said experts. Last year, the machinery of civic body was overburdened due to back to back elections, first the general election in April-May, and thereafter, the Assembly polls. In between, the survey of Ladki Bahin Yojana saw the staffers jostling for work. That time, the property tax collection work suffered and for civic body, the internal accruals are one of the most important. The robustness in the tax collection also has an impact on the ratings and since NMC is considering tapping the market to raise funds for big ticket projects, the Property Tax revenue is quite an important component. Another good trend observed in 2025-26 is rise in percentage of property owners opting for on-line mode to pay the property tax. For NMC machinery also, the on-line mode is quite advantageous as it reduces burden on personnel who can be utilised for realisation of old dues from defaulters.
 
Tax counters remain open till midnight, 1st time in history
 
For the first time in history, NMC kept its counters open till midnight to enable citizens pay their property tax before end of first quarter of financial year. This enabled them to reap benefit of 10 per cent rebate on general tax of civic body. There was tremendous rush of citizens who did not want to let go an opportunity and made a beeline at NMC’s Zonal offices. This prompted civic body officials to keep the tax counters open till the last person stands in the queue. The move will ensure maximising the property tax collection. The taxable base of properties has crossed 6.5 lakh mark in city. NMC, during the current year, has managed to collect arrears of Rs 18,67,38,401 while current collection is Rs 62,01,24,010 in total collection of Rs 80,68,62,411. For the same period, during last year, the total properties that paid annual dues were 1,58,452 wherein arrears netted was Rs 19,17,82,356 and current collection was Rs 53,95,61,138 in total mop-up of Rs 73,13,43,494. In short, the arrears mopped up during last year were a shade better than current year but this year, dues realisation is more till June 2025 than in previous year.