The Bhubaneswar Municipal Corporation (BMC) is on track to set a new all-time record in revenue collection this financial year, with holding tax receipts already surpassing Rs 100 crore well before the end of March.
For the 2025-26 fiscal year, the civic body had set an ambitious target of collecting Rs 159.39 crore in holding tax. Yet, even before the final week of the month — when bulk payments from government departments usually pour in — the corporation has crossed the Rs 100-crore milestone. Officials are now confident of not only meeting but exceeding the annual target, marking a significant achievement in BMC’s revenue history.
Zone-wise, the targets were fixed at Rs 59 crore for the North Zone, Rs 45 crore for the South-East Zone, and ₹55 crore for the South-West Zone. So far, the North Zone has collected over Rs 40 crore, the South-East Zone Rs 30 crore, and the South-West Zone more than Rs 30 crore.
Despite year-on-year increases in targets, BMC has struggled to achieve 100 per cent realisation in the past. The biggest hurdle remains chronic tax defaulters — both private entities and government departments — who owe the corporation crores in arrears. Officials said repeated notices have yielded little result, leaving the civic body largely helpless in recovering the dues.
A major untapped potential lies in the large number of unassessed properties. BMC currently assesses only about 50 per cent of the city’s houses due to acute staff shortage. The remaining 50 per cent are yet to be brought under the tax net. Once these properties are assessed — especially after the upcoming census that will increase both the number of houses and wards — annual holding tax collection could comfortably cross Rs 200 crore, sources said.
To fast-track the process, BMC has signed an agreement with a private agency to carry out house-to-house assessment. Many newly constructed buildings are yet to be assessed or have not started paying tax. Revenue officials expect a substantial jump in collections from 2026-27 onwards once the exercise is completed.
In a fresh drive, the corporation has prepared a list of major defaulters. As many as seven government organisations and 13 private entities have been identified as owing more than Rs 1 crore each in holding tax. Another nine government and 12 private entities fall in the Rs 50 lakh to Rs 1 crore bracket. In the below-Rs 50-lakh category, 1,174 government and 65,146 private defaulters have been flagged. All have been directed to clear their dues within the stipulated time.
Last year (2024-25), BMC collected Rs 101 crore in holding tax. This year’s collections have already surpassed that figure, with several weeks still remaining.
To sharpen focus on recovery, a senior officer has been exclusively assigned to oversee holding tax realisation. Deputy Commissioners in each zone have been tasked with close monitoring and expediting collections. Three officers have been deployed in the North and South-West Zones each, while five have been assigned to the South-East Zone.
“With very little time left in the current financial year, we are confident of creating a new revenue record,” said Ajay Mohanty, Deputy Commissioner, Revenue, BMC.
The surge in collections is being attributed to better monitoring, targeted recovery drives, and growing compliance among property owners. If the momentum continues, BMC is set to not only meet its 2025-26 target but also lay a strong foundation for even higher revenue in the coming years.
