Nagpur Municipal Corporation Faces Property Tax Revenue Drop Amid Compliance Issues The Nagpur Municipal Corporation (NMC) has experienced a significant decline in property tax revenue for the fiscal year 2025-26, despite an increase in the number of properties under its jurisdiction. The civic body collected Rs252.66 crore in property taxes so far, marking a sharp drop from Rs306 crore in the previous fiscal year (2024-25), when it achieved 94% of its Rs325 crore target. This decline highlights systemic challenges in compliance and recovery, as the NMC now faces a critical shortfall in its primary revenue source. The total number of properties registered under the NMC has risen to 8,36,842, yet only 4,60,094 property owners have paid taxes, leaving a staggering 3.76 lakh properties either in default or outside the tax net. Property tax remains the largest contributor to the NMC’s revenue, making the shortfall a severe financial strain on the cash-strapped civic body. For 2025-26, the department initially aimed to collect Rs350 crore, but this target was later revised upward to Rs400 crore, further widening the gap between expectations and actual collections. Officials cited the civic election cycle as a contributing factor to the slowdown. During peak collection months in December and January, most zonal teams were diverted to election preparation and poll-related duties, disrupting routine recovery operations. An official noted that in January 2024, the NMC collected around Rs30 crore, but this year’s collections dropped drastically to just Rs6 crore. The breakdown of collections reveals uneven performance across different zones. Laxmi Nagar, the best-performing zone, has 62,437 taxpayers out of 93,402 properties, contributing Rs33.27 crore. Dharampeth follows with 33,872 payers and Rs22.#nagpur #property_tax #nagpur_municipal_corporation #nmc #compliance_issues
