How Did Digital Initiatives and Rebates Help Surat Surpass Rs 359 Crore in April Tax Collection?

Surat, June 2 (NationPress) Following the removal of octroi, property tax has become the main revenue stream for the Surat Municipal Corporation (SMC). To promote timely payments, SMC has introduced rebates on seven tax categories for April and May, resulting in an impressive collection of over Rs 359 crore in April alone.

Each year, SMC provides a 10% discount on property tax payments made in April and a 7% discount for those in May. Furthermore, an extra 2% discount is available for online transactions, encouraging residents to use digital payment methods.

This approach has significantly increased early tax payments, with 2.57 lakh property owners settling their dues within the first two months of the fiscal year.

In the first two weeks of April, SMC collected Rs 100 crore in property tax and has disbursed Rs 18.72 crore in rebates during this period.

Remarkably, Rs 185.30 crore was collected online from 94,026 taxpayers, showcasing the effectiveness of SMC's digital initiatives. An official remarked, “The way Surat residents are paying their taxes in advance has simplified our collection process. This also allows us to accelerate development projects across the city without delays.”

In Gujarat, property tax has become essential for urban local bodies following the abolishment of octroi. Municipal corporations, including Ahmedabad, Surat, Rajkot, and Vadodara, heavily depend on this tax to finance civic services such as infrastructure, sanitation, and water supply. Among these, Surat Municipal Corporation has excelled with its effective collection methods and incentive-based strategies.

For the fiscal year 2023-24, SMC has garnered over Rs 900 crore in property tax, thanks to timely rebates and an efficient online payment system. In a similar vein, Ahmedabad Municipal Corporation (AMC) collected around Rs 1,000 crore, with over 60% of payments processed digitally. AMC also offers early bird rebates of 10% in April and 7% in May, motivating residents to pay promptly and online.

In Rajkot, property tax collection reached approximately Rs 300 crore, while Vadodara reported collections nearing Rs 450 crore in the last fiscal year. These statistics reflect a growing trend of taxpayers utilizing online systems, resulting in improved compliance and increased revenues for municipalities.

The Gujarat government monitors and ranks municipal bodies based on their tax collection efficiency. Cities that implement e-governance systems and structured rebate schemes have demonstrated significantly higher compliance rates.

On a broader scale, urban local bodies in Gujarat collectively amassed property tax revenues exceeding Rs 4,000 crore for the financial year 2023-24, as per state-level urban development data.