Bhubaneswar Municipal Corporation eyes defaulters to improve holding tax collection

In order to meet its revenue targets, the civic body has decided to go after the 804 big defaulters, who have not paid tax for more than a year.
For representational purposes
For representational purposes

BHUBANESWAR: With holding tax collection remaining just around 26.6 per cent (pc) of the target for this fiscal, the Bhubaneswar Municipal Corporation (BMC) has shifted its focus on collection of arrears from big defaulters to deal with the revenue deficit. 

The revenue collection as of January has remained only Rs 24 crore against the 2020-21 target of Rs 90 crore. The holding/ property tax collections have suffered this financial year due to outbreak of COVID-19 in March last year, BMC officials said.

"In 2019-20, around Rs 42 crore holding tax was collected against the fiscal target of Rs 60 crore. However, if the collection doesn’t improve this year, it may affect the spending of the civic body," the official said. 

In order to meet its revenue targets, the civic body has decided to go after the 804 big defaulters, who have not paid tax for more than a year. The total pending tax in BMC jurisdiction has mounted to Rs 43 crore.

The BMC has engaged TG Swikruti self-help group (SHG) for door-to-door collection of holding tax from the defaulters. The transgender members of the SHG will visit to owners of the establishments where holding tax dues have exceeded Rs 25,000.  

Sources said the revenue collection of the civic body has also been affected due to delay in completion of the survey of around 40,000 housing and commercial establishments. Less than 80 per cent of the survey has been completed so far for collection of property tax as per the revised benchmark of the land values.

The tax reassessment in different wards will come into effect retrospectively from April 1, 2019. The tax is being calculated at the rate of 17.5 per cent of the annual value of the building taking into account 0.5 per cent of the benchmark value of the property as of April 2019.

With several residents objecting to it stating that the new assessment increases holding tax manifold, the BMC, on the basis of an interim order of the High Court, has decided to collect 50 per cent of revised assessment amount to be paid towards any holding from 2019-20 to 2020-21.

Poor show

  • Rs 24 crore collected against 2020-21 target of Rs 90 crore

  • Rs 42 crore collected against Rs 60 crore target in 2019-20

  • Rs 43 crore total pending tax in BMC jurisdiction 

  • 804 big defaulters in the city

Related Stories

No stories found.
The New Indian Express
www.newindianexpress.com