Geo-tagging drive launched as Punjab struggles to recover Rs 1,100 crore in property tax
CHANDIGARH: The cash-strapped Punjab government has begun geo-tagging properties across the state to improve property tax recovery. At present, around 94,000 commercial property owners owe nearly Rs 1,100 crore in property tax, as identified by various civic bodies. Poor recovery has begun to affect revenue-dependent essential services. Of the total 1.55 lakh owners of commercial, industrial and other properties, 94,000 are commercial property owners. The Local Bodies Department has so far completed surveys in 20 urban local bodies (ULBs), while surveys in another 22 ULBs are currently underway. In the states 167 ULBs, an initial survey has revealed an average shortfall of Rs 2 crore to Rs 3 crore per ULB in property tax collection. In larger ULBs with municipal corporations, the deficit is expected to be significantly higher. Sources said executive officers of municipal councils and commissioners of municipal corporations are being held accountable for property tax recovery. Annual collection targets are being increased by 3 per cent over the previous years collection. As a result, property tax collection has risen from Rs 282 crore in 202122 to Rs 400 crore in 202223 and Rs 486 crore in 202324, after officials were assigned specific targets. The department has also identified 48 major commercial property defaulters who together owe Rs 2.15 crore in property tax. Geo-tagging of all properties has been initiated as authorities suspect a wide mismatch between tax receipts and the actual number of properties in urban areas. Geo-tagging enables the department to record the exact location, actual covered area and the nature of activity conducted on a property. Due to the absence of such mapping earlier, many properties in large cities such as Ludhiana, Jalandhar and Amritsar had remained outside the departments purview. Surveys have already been completed and identification plates affixed in cities including Patiala, Hoshiarpur, Sultanpur Lodhi, Dera Bassi, Khanna and Chamkaur Sahib. Punjabs property tax collection remains significantly lower than that of other states, largely because several high-value commercial establishments continue to default on payments. Despite multiple notices, repeated opportunities for compliance and the introduction of a one-time settlement (OTS) scheme, defaults persist. A fact-finding report on illegal structures in Ludhiana during the previous government revealed discrepancies between power connections issued by the Punjab State Power Corporation Limited (PSPCL), approved layout plans and property tax receipts. It also highlighted mismatches between the assessed covered area and the actual built-up area of properties. Under the Jawaharlal Nehru National Urban Renewal Mission, ULBs are mandated to achieve at least 85 per cent property tax collection. However, recovery remains poor. An audit by the Comptroller and Auditor General (CAG) found that ULBs collected only 48 per cent to 54.14 per cent of property tax between 2015 and 2020. The audit also noted failures in recovering user charges such as water and sewerage cess.
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