BHUBANESWAR: The Bhubaneswar Municipal Corporation (BMC) has determined that it expects to collect Rs 72 crore in holding tax from properties built on land owned by the Odisha Industrial Infrastructure Development Corporation (Idco).
Following government approval last year, BMC will begin collecting this holding tax from Idco properties starting in the financial year 2025-26. Of the total Rs 72 crore, around Rs 32 crore is owed by educational institutions located on Idco land, according to civic body officials.
Holding tax is crucial for strengthening the BMC’s financial resources. In addition to educational institutions, government and commercial establishments, as well as residential properties, contribute to holding tax revenue each year based on annual assessments conducted by the civic body. Some properties have significant current dues, while others have accumulated both arrears and current dues.
“Previously, we did not assess properties built on Idco lands, regardless of whether they were educational institutions or industrial clusters. We requested and received government approval last year. While we were unable to fully assess all properties, this year we have calculated the total holding tax on Idco land to be Rs 72 crore. We will begin enforcement in the first week of February to collect as much tax revenue as possible,” stated Ajay Mohanty, BMC Deputy Commissioner (Revenue).
BMC officials also noted that several prominent educational institutions have approached the Orissa High Court to challenge the tax assessments related to their properties.
BMC calculates holding tax based on 0.5% of the land value for specific areas, which vary by locality, along with the building cost assessed at Rs 1.35 per square foot of built-up space. Due to the government’s increased land valuations in various parts of Bhubaneswar, the final tax amounts have also risen in the updated assessments, which the Orissa High Court halted in 2021. Since then, taxes have been collected based on previous rates, according to officials.
In November, BMC announced plans to hold 900 special camps across 67 wards, collaborating with residents’ welfare associations to promote awareness about paying holding tax. Some camps have already taken place, but efforts will intensify from February onwards.
