The Midnapore Municipality in West Midnapore has announced a 50 per cent rebate on property tax penalty, the move expected to benefit around 24,000 of the town’s 42,000 property holders who have defaulted on paying property tax since the lockdown in March.

Announcing the offer, the municipality authorities have also extended the benefit to a substantial number of defaulters who have not paid taxes over the last two to three years.

Sources said the move was aimed at raising revenue to address the municipality’s inability to meet wage payments for 700-odd casual workers, 100 of whom have been actively working throughout the lockdown.

The municipality’s wage obligations to workers each month stand at around Rs 40 lakh.

“The state government pays 85 per cent of the municipality’s wage bill but the remaining 15 per cent is met through municipality revenue, of which property tax is a huge part,” said a source.

Midnapore town has 25 wards with 42,000 property holders, in addition to 6,000-odd business owners, whose trade licence renewal penalty have also been waived as part of the waiver scheme.

Some 4,000 traders have not renewed their licences this year, causing substantial loss in earnings to the municipality. Current dues on account of property tax and trade licence tax stands at Rs 10 crore.

“If the correct amount is paid within October, we will waive half the penalty for property and trade licence holders,” said an official, adding that a full waiver was not permissible legally.

“We are aware that several people asked for a full waiver on the penalty in light of adverse financial circumstances amid the lockdown, but we can’t do that,” said municipality administrator and SDO Dinanarayan Ghosh.

Residents of the town welcomed the move, saying a “full waiver” on the penalty would have been ideal but this waiver was “acceptable”. “Many have no income, and the waiver will help,” said Midnapore resident Mandakranta Basu.