Patna Municipal Corporation Achieves Historic Property Tax Milestone in 2025-26
The Patna Municipal Corporation (PMC) has recorded its highest-ever property tax collection, amassing an impressive Rs 125 crore for the fiscal year 2025-26. This achievement not only surpassed the set target of Rs 116 crore but also marked a significant increase from the previous year's collection of Rs 114 crore, reflecting a growth of Rs 11 crore.
Revenue Surge and Government Contributions
Provisional figures indicate that the total revenue from various sources reached approximately Rs 250 crore, with calculations still ongoing and potential for further increases. The municipal area, encompassing 3.06 lakh holdings, saw substantial contributions from government properties alone, which accounted for over Rs 28 crore.
Key government entities led the tax payments, with the building construction department emerging as the top contributor at Rs 15.80 crore. Following closely, A N College paid Rs 4.37 crore, while the CRPF contributed Rs 1.12 crore. The energy department and Patna Medical College and Hospital secured the fourth and fifth positions with payments of Rs 93.98 lakh and Rs 78.31 lakh, respectively.
Role of the One-Time Settlement Scheme
A pivotal factor in exceeding the tax target was the implementation of a one-time settlement (OTS) scheme, valid until March 31, 2026. This initiative offered a 100% waiver on interest and penalties, allowing property owners to settle their accounts by paying only the principal amount. This provision proved particularly effective in addressing long-standing arrears, encouraging major defaulters such as government offices and educational institutions to clear debts that had accumulated over decades.
Notably, A N College utilized this scheme to settle its holding tax for the first time since the PMC's establishment in 1952. Originally facing arrears of approximately Rs 13 crore, the institution paid Rs 4.37 crore after the waiver, demonstrating the scheme's impact in converting dormant assets into active revenue.
Official Insights and Future Outlook
A senior official from the PMC revenue department, speaking anonymously, highlighted that government offices and educational institutes are typically the major defaulters. However, the OTS scheme this year motivated widespread settlement of property taxes, eliminating penalties and fostering financial compliance.
Mayor Sita Sahu credited the record collection to the synergistic effect of the OTS incentives and the dedicated efforts of PMC employees. She expressed gratitude for the door-to-door awareness and collection drives that played a crucial role in surpassing the target. The mayor also expressed optimism that residents will continue to fulfill their municipal responsibilities in the coming years, supporting ongoing civic development and governance initiatives in Patna.
