Two years after it was planned, the Nagpur Municipal Corporation (NMC) is set to enforce the new tax system from April 1.

To increase revenue and bring transparency, the NMC general body had passed a resolution on March 4, 2015, to implement the new property tax system — capital value + annual letting value based on ready reckoner
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According to the NMC's data, there are 5,36,459 properties — both residential and commercial — in the city. The property tax collection target for the current fiscal was Rs307 crore, but till February 28, the NMC could only mop up Rs127.42 crore.

If the civic administration imposes the new system, the NMC's revenue from the current demand would be around Rs500 crore as against Rs162.79 crore going by the previous norm.

Now, the property tax department will calculate the tax as per the new system in 2017-18. Also, the department will compare the revised amount with that of 2015-16 and calculate the difference. The department will recover the difference from property owners, thus requiring payment of almost double the tax this year.

In fact, the increase in property tax in 2017-18 will be very high, since tax is likely to increase two-fold in the new system for residential properties and three-fold for commercial properties.