The Kolkata Municipal Corporation has launched a six-month property tax waiver scheme for 3,86,288 defaulters, offering full relief on interest and penalties for residential and government properties and targeting ₹784 crore in collections by 31 March 2027.
KMC administrator Smita Pandey announced the scheme at a press conference at the civic body’s office. According to the details shared at the briefing, the municipal corporation has total outstanding property tax dues of ₹6,854.29 crore. This includes ₹3,138.76 crore in principal tax, ₹3,314.13 crore in interest and ₹401.38 crore in penalties.
The waiver structure varies according to the use of the property. Residential and government properties will receive a 100% waiver on both interest and penalties. For commercial properties, the scheme provides a 70% waiver on interest and a 99% waiver on penalties. Mixed-use properties will receive an 80% waiver on interest and a 99% waiver on penalties.
The scheme will remain in force for six months, up to 31 March 2027. KMC may extend the period by a further two months depending on the situation, Pandey said. The time limit makes the scheme a structured attempt to convert long-pending municipal dues into collections within a defined period.
Property owners can apply online through the KMC website, kmc.wb.gov.in. An offline application facility will also be available at assessment collection offices. KMC will establish assistance booths at every borough office to help residents access the scheme and complete the required process.
The civic body has also clarified how the scheme will apply to recent penalty payments and legal disputes. Penalties collected from taxpayers in recent days will be adjusted under the waiver scheme, according to the announcement. For cases pending in court, taxpayers will have to withdraw the cases before settling the dues in accordance with the scheme’s provisions.
The size of the outstanding amount highlights the scale of the collection challenge facing KMC. Interest accounts for almost half of the total arrears identified in the announcement, while penalties form a smaller but separate component. The waiver therefore focuses on reducing additional liabilities while retaining the principal tax as the central amount to be settled by property owners.
The scheme links individual tax relief with the municipal corporation’s revenue recovery effort. KMC has set a collection target of ₹784 crore during the waiver period. The immediate operational test will be whether the online system, assessment collection offices and borough-level assistance booths can process applications from a large number of defaulters before the deadline.
The next formal milestone is the end of the initial waiver period on 31 March 2027. KMC will then decide whether the scheme should be extended by two months, based on the situation and the progress of collections.
