Despite over one lakh registered property tax assesses in Panchkula, only slightly more than 24,000 property owners paid their taxes for the current financial year by the July 31 deadline, according to official data. This has left a substantial gap between projected revenue and actual collection, with the Municipal Corporation (MC) receiving only ₹6.62 crore out of the expected ₹155 crore.
The municipal authorities have confirmed that no rebates are applicable after the July 31 deadline. Defaulters are liable to pay interest on the unpaid principal amount. The unpaid property tax is not limited to private property owners; government departments also account for a significant portion of the pending dues.
According to TOI, sources within the civic body said that the MC has struggled to recover the outstanding amounts due to insufficient enforcement and follow-up measures. While notices have been issued to defaulters, little concrete action has been taken beyond this, resulting in a passive approach to tax collection. The inability to recover dues has left the civic body financially constrained, affecting its capacity to fund essential services and maintain infrastructure across Panchkula.
The persistent gap in property tax collection highlights structural challenges in urban revenue management. Officials noted that a more proactive strategy, including stricter enforcement and enhanced follow-up with defaulters, is necessary to bridge the revenue shortfall. The low compliance rate among registered assessees not only limits the MC’s financial resources but also hampers ongoing development projects and maintenance of civic amenities.
Government departments, which contribute significantly to the pending taxes, are expected to set an example for compliance. Sources emphasized that better coordination between state departments and the municipal corporation could help improve collection rates. Meanwhile, private property owners are reminded of the consequences of defaulting, including interest penalties and potential legal action if dues remain unpaid.
The current situation reflects broader challenges faced by urban local bodies in India, where limited enforcement capacity, administrative delays, and lack of public awareness contribute to significant revenue shortfalls. Ensuring timely collection of property tax is critical for maintaining city infrastructure, supporting municipal services, and facilitating sustainable urban development.
The municipal corporation has indicated that efforts are underway to improve monitoring and recovery processes. However, unless proactive measures are implemented to engage both government and private property owners, the gap between expected and actual tax collection is likely to persist.
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