DINDIGUL: The Dindigul City Corporation has disconnected around 350 domestic water connections and sealed 45 commercial establishments over non-payment of water and property taxes for the financial year 2024-25.
According to official records, Dindigul corporation’s revenue target in 2024-25 for collecting property tax was Rs 34.46 crore including Rs 8.22 crore pending dues from 2023-24.
An official from the Revenue Section of the Corporation said, “Many assessees showed little interest in paying their taxes, placing a heavy burden on the organisation. During audit checks, it was found that several commercial establishments faced financial hardships during the Covid-19 pandemic, leading to payment delays. Despite repeated show-cause notices, the dues remained pending. Consequently, we sealed more than 50 establishments, including 35 shops, over tax arrears.”
The official further added, “In addition, a large number of domestic consumers failed to pay their water taxes. Show-cause notices were issued to over 13,000 assessees during this period. Around 350 water connections were disconnected as a result.
This enforcement move led to immediate payments, with almost all domestic assessees clearing their dues. Currently, nearly all 48,375 domestic accounts have settled their water tax payments. Furthermore, we managed to collect Rs 26.03 crore in property taxes.”
In response to mounting pressure, senior officials directed staff across departments to conduct field visits throughout February and March to ensure better tax collection. Additionally, memos were issued to 15 local civil officials for lacklustre performance.
Dindigul District Chamber of Commerce President D Kribhakaran said, “Many shops and commercial establishments struggled financially and were unable to pay property tax. Later, several closed without clearing dues. When new shop owners took over, they inherited the tax arrears, causing further delays.”
Elaborating on the issue to TNIE, Mayor J Ilamathi said,”Due to heavy dues, we had to take strict action during February and March. Fortunately, these measures brought positive results, as many traders and house owners cleared their dues. As we were already facing financial strain, the pending taxes had crippled the Corporation’s functioning. Now that most arrears have been recovered, we are able to maintain a steady flow of revenue.”