Bengal records 168% rise in panchayat property tax collection; GST revenue up 17% in October

A senior state official attributed the increase to the new government’s efforts to improve tax collection. “ (File)

West Bengal’s panchayat areas recorded a 168% increase in property tax collection during the first seven months of the current financial year, while the state’s Goods and Service Tax (GST) collection rose 17% year-on-year in October, according to figures from Nabanna.

Property tax collection in panchayat areas rose to nearly Rs 118 crore between April 1 and October 27 this year, from Rs 44.05 crore during the corresponding period of 2025–26. This represents an increase of around Rs 74 crore.

The number of property owners paying tax also rose from 11.69 lakh in the corresponding period last year to 28.94 lakh this year. The increase comes after the state introduced an online property tax collection system in panchayat areas, which officials say has helped improve collection.

The state’s GST collection stood at Rs 6,055 crore in October, around 17% higher than in the same period last year. According to sources in Nabanna, festive-season spending, particularly in the hospitality and food services sectors, contributed to the increase.

GST collection from hotel and restaurant services during the Durga Puja period was around Rs 60 crore, nearly 35% higher than the previous year. Officials said this figure covers tax on food bills and accommodation charges, and excludes revenue from liquor sales.

The average monthly turnover of the state’s hotel and restaurant sector was around Rs 650 crore in 2025-26. In September and October, it rose to nearly Rs 1,000 crore in each month – an increase of around 54% over the previous year’s monthly average. GST collection from the sector crossed Rs 100 crore in each of the two months, according to the figures.

The state has also reported an increase in property tax collection in its 128 municipalities. However, the collection process is not fully online in all urban local bodies, making it difficult to compile figures centrally. Officials said steps were being taken to bring municipal property tax under a fully online system in the coming months.

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In the 2025-26 financial year, panchayat areas collected Rs 139.18 crore in property tax from 44.33 lakh taxpayers. With five months remaining in the current financial year, the state expects collections to exceed last year’s total.

The increase in property tax collection is significant for local bodies as they seek to raise their own revenue. Improving a state’s own revenue is also among the criteria linked to performance grants under the 16th Finance Commission.

A senior state official attributed the increase to the new government’s efforts to improve tax collection. “After the BJP government came to power in Bengal, it has been making concerted efforts to collect taxes compared to the previous government. This has resulted in an increase in collections. In the case of GST, a more positive business environment may also have contributed to the rise,” the official said.