Jalandhar MC lost Rs 5 cr revenue in two months of lockdown

The municipal corporation (MC) of Jalandhar has faced a loss of Rs 5 crore in revenue over the past two months that the curfew/lockdown has been in force. The MC’s major revenue sources are taxes on advertisement and property it collects from the public.

No revenue has come in over the past two months.

Arrears from the public are also an issue that plagues the civic body’s functioning.

Mayor Jagdish Raja said for the period from 2013-14 to March 31, 2020, the MC had not received over Rs 50 crore on account of house and property tax from over 50,000 defaulters. In the fiscal year that has just ended, the MC earned

Rs 29.3 crore against targeted Rs 40 crore. In 2018-19, MC collected Rs 28.5 crore against targeted Rs 40 crore amount.

The MC has sent over 20, 000 notices, so far this fiscal, even warning defaulters of sealing of property. Yet, the public response has been tepid with only Rs 24.5 lakh accruing to it in this financial year to date, said a MC officer.

Now, the MC has offered a one-month extension to avail the benefit of 10% scheme on property tax to June 30, in view of the prevailing covid-19 situation. The mayor added, “We have also extended one-time settlement (OTS) policytill June 30, allowing defaulters to clear outstanding for house tax, property tax, water and sewerage charges without any interest on pending amount. This outstanding is around Rs 50 crore and could help MC manage efficiently.”