Howrah Municipal Corporation has announced a 100% waiver of interest and penalties on outstanding property tax under the Howrah Municipal Incentive Scheme 2026, a move expected to help the civic body recover around Rs 200 crore from long-pending dues. The scheme was announced on Tuesday by Umesh Rai, the Minister of State for Municipal Affairs and Urban Development in West Bengal.
The waiver comes ahead of the Howrah Municipal Corporation election. The city has been without an elected municipal board for several years, and the source report said complaints about deteriorating civic services and growing public dissatisfaction have increased. The corporation’s decision will allow eligible taxpayers to clear their outstanding property tax without paying the interest and penalties levied on the arrears.
According to the municipal corporation, the scheme covers interest and penalties applicable to outstanding property tax for the last quarter of the 2025-26 financial year. The waiver will remain available until March 31 next year. Residential properties will also receive an additional 10% rebate under the scheme, according to information attributed to the civic authorities.
The corporation has estimated that nearly Rs 480 crore in property tax is currently outstanding. The source report said the number of property taxpayers was 1.90 crore. It also reported that many people had not paid property tax for several years, contributing to the accumulation of arrears and limiting the civic body’s revenue collection.
Rai said similar waiver schemes had been introduced previously, but the amount recovered from outstanding taxes had not been satisfactory. He said the new scheme would make it easier for people to settle their dues while increasing the corporation’s revenue. The expected recovery of around Rs 200 crore would provide a significant one-time inflow against the reported outstanding amount.
The scheme is designed to be accessed both online and in person. Taxpayers can pay their outstanding property tax from home through the online system or visit the municipal corporation directly. A ‘May I Help You’ desk has also been opened at the corporation to assist taxpayers with the payment process.
The announcement places the focus on the relationship between property tax collection and the delivery of municipal services in Howrah. Property tax is a recurring source of revenue for urban local bodies, and prolonged arrears can affect the funds available for civic administration. The corporation’s immediate objective under the scheme is to convert long-pending liabilities into collections before the March 31 deadline.
The waiver will now remain open for eligible taxpayers until that date, with payments accepted through the corporation’s online platform and its offices. The municipal help desk will provide assistance during the implementation of the Howrah Municipal Incentive Scheme 2026.
