DELHI: While the country deals with demonetisation and its aftermath, the government has one reason to cheer. Property tax collections across the country have soared a whopping 268% since the last year, thanks to the government allowing people to make payments in the demonetised 500 and 1,000 rupee currency notes to Urban Local Bodies (ULBs).
Urban Development Minister Venkaiah Naidu released data on tax collected by 47 municipal bodies across India, which showed tax collected in November at Rs 13,192 Crores, compared to just Rs 3,607 Crores in the same period last year. The lion’s share of this was cornered by Mumbai, the financial capital of India, which collected Rs 11,912 Crores compared to Rs 3,185 Crores last year.
Other cities which saw a massive jump in collections include:
|City||November 2015 (in Rs)||November 2016 (Until the22nd) (in Rs)|
|Surat||7.19 Cr||100 Cr|
|Hyderabad||8 Cr||208 Cr|
|North MCD Delhi||1.5 Cr||18.8 Cr|
|South MCD Delhi||2.2 Cr||16.5 Cr|
|Allahabad||0.89 Cr||4.70 Cr|
Source: Ministry of Urban Development
Happy with the positive effect of demonetisation on tax collection, Venkaiah Naidu said that municipal bodies will now have more money which will help them provide better services to citizens.
Prime Minister Narendra Modi’s decision to ban 500 and 1000 rupee currency notes in order to fight ‘black’ money is expected to have far-reaching effects on the Indian economy, particularly the real estate sector. While organized players have largely moved to accept clean, ‘white’ transactions, there is no denying that most real estate transactions by the unorganized players are carried out with a part of the value paid in cash. This has also led to the sector becoming a hot favourite among people looking at investing and accumulating black money.
However, demonetisation has successfully closed this option off for black-money hoarders, making avenues such as paying taxes a far more appealing proposition to get rid of money accumulated in the form of demonetised currency notes.
Edited By Nikhil Narayan Sivadas