Shimla Imposes Fines on Over 12,000 Property Owners for Delayed Tax Payments

More than 12,000 property owners in Shimla have been fined for failing to pay their property tax on time. Defaulters will now have to pay an additional 5% penalty on their outstanding dues to the Shimla Municipal Corporation (SMC).

Joint Commissioner Bhuvan Sharma said on Monday that notices are being issued to all defaulters. “If they fail to clear their dues even after receiving the notice, action will be taken as per the provisions,” he said, adding that water and electricity connections may also be disconnected for continued non-payment.

He further explained that persistent defaulters will face an additional monthly charge of 1% on the total outstanding amount until payment is made.

Shimla has around 32,000 buildings, and the corporation issues annual property tax bills every April, with the deadline for payment in October. However, over 12,000 property owners have still not cleared their dues this year.

To encourage timely payment, the SMC offers a 10% rebate to those who pay their tax before the deadline. Despite these measures, property tax evasion remains a major challenge for the civic body.

Recently, the corporation conducted a survey to identify property owners running commercial activities from residential premises while still paying tax at domestic rates. The aim is to collect tax at commercial rates from such violators.

In the last fiscal year (2024–25), the corporation collected ₹19 crore in property tax and has set a target of ₹21 crore for 2025–26.