PMC’s property tax collection hits all-time high, crosses Rs116-crore target

Patna: The Patna Municipal Corporation (PMC) has achieved its highest-ever property tax collection of Rs125 crore in fiscal 2025-26, surpassing its Rs116-crore target, driven by improved enforcement and the success of a one-time settlement scheme.The tax collection of last fiscal (2025-2026) is Rs11 crore more that Rs114 crore property tax collected in the 2024-25 financial year.The PMC officials said total revenue of the corporation from different sources reached approximately Rs250 crore, though final figures remain provisional as the calculations continue and they might increase.The municipal area has 3.06 lakh holdings. Collections from govt properties alone accounted for more than Rs28 crore.

The building construction department (BCD) was the highest govt tax payer of Rs15.80 crore. AN College was the second-highest govt contributor at Rs4.37 cr, while CRPF paid Rs1.12 crore. The fourth and fifth positions were taken by the energy department and Patna Medical College and Hospital by paying Rs93.98 lakh and Rs78.31 lakh, respectively.The one-time settlement (OTS) scheme for holding tax played a significant role in surpassing the target by addressing long-standing arrears.

It was valid till March 31, 2026. The scheme offered a 100% waiver on interest and penalties, allowing property owners to settle accounts by paying only the principal amount. This provision encouraged major defaulters, particularly govt offices and educational institutions, to clear debts that remained unpaid for decades due to mounting interest.For the first time, since the establishment of the PMC in 1952, A N College settled its holding tax through this initiative.

The institution originally owed approximately Rs13 crore as arrears, but paid Rs4.37 crore after the waiver was applied.A senior official in the PMC revenue department, on condition of anonymity, said: “The major defaulters are usually govt offices and educational institutes; however, since the OTS came this year, it encouraged everyone to settle their property taxes once and for all without the penalties converting dead assets into active revenue.”Mayor Sita Sahu attributed the record collection to the combination of the OTS incentive and the efforts of employees. She expressed gratitude to all those who conducted door-to-door awareness and collection drives, which helped surpass the targeted collection. The mayor expressed hope that residents would continue to fulfil their municipal duties in the following years as well.