Prayagraj: Property owners in the city will no longer have to pay monthly compound interest on house-tax arrears, with Prayagraj Municipal Corporation House approving a new system under which only 12% annual simple interest will be charged on outstanding dues.The decision has been taken by PMC administration following state govt’s directive to end the practice of charging compound interest. The civic administration placed the proposal before House, which passed it through a resolution.Chief tax assessment officer Sanjay Mangai said the corporation was earlier charging 12% annual interest on house-tax arrears along with 1% interest every month, resulting in compound interest. He said other municipal corporations were not following this system.Under the revised arrangement, a property owner with one year of house-tax arrears will have to pay 12% interest for that year, without any additional monthly compounding.Some councillors have raised the issue of registration being sought for partition of houses. They said families applying for division of their properties were being asked to get the property registered first.Municipal commissioner Sai Teja said registration was mandatory when the partition involved Nazul land. In other cases, the civic body could collect house tax from occupants as possessors.
