Office of the Bhubaneswar Municipal Corporation (BMC).  File Photo| Express
Bhubaneswar

BMC to merge user fee, holding tax collection from 2026-27

Sources said a decision has been taken recently and the software for the purpose is being developed for its rollout from 2026-27 fiscal.

Sudarsan Maharana

BHUBANESWAR: With user fee collection from households towards sanitation service remaining low, the Bhubaneswar Municipal Corporation (BMC) has decided to combine it with holding tax and collect both the fees at a time from the next fiscal.

Sources said a decision has been taken recently and the software for the purpose is being developed for its rollout from 2026-27 fiscal. Earlier, the civic body was collecting the user fee from commercial waste generators but started collecting the same from households from the ongoing financial year.

As per the BMC’s norms, households in the economically weaker section (EWS) and low income group (LIG) having built-up area of up to 800 sq ft are required to pay Rs 50 per month while middle income group (MIG) households with a built-up area between 800-1,200 sq ft are charged Rs 75 per month. Similarly, high income group (HIG) households, having built-up area exceeding 1,200 sq ft or larger residential units are charged Rs 125 per month.

However, sources said the collection has remained low owing poor number of demand notice and poor response to it from the households. BMC statistics suggest against total collection of around Rs 2.5 crore user fee in 2025-26 so far, the amount from residential units has remained only about Rs 23.25 lakh as of February 12. Southeast zone accounts for the highest collection of around Rs 10 lakh.

Officials said the Swachh Sathis are facing difficulties in collecting the user fee on time from many households due to resistance. The civic body has issued demand notices to about 6,938 people, that represents only a small fraction of the city’s over two lakh households.

BMC deputy commissioner for sanitation, N Ganesh Babu said they have expedited the collection process and also decided to organise awareness drives at ward-level to sensitise households.

An application is also being developed for collection of user fee and holding tax at a time from both residential and commercial units from 2026-27 fiscal. “The software is being developed and will be integrated soon with Bhubaneswar.me portal on which the user fee amount will reflect combinedly with holding tax. This will make the payment convenient for the users and also help BMC in speeding up its collection,” another official said.

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