HYDERABAD: The Secunderabad Cantonment Board has stepped up property tax collection efforts and issued more than 5,000 notices to defaulters.
The move was taken after the SCB got a rude jolt to its tax collection efforts as just Rs 30 crore was collected towards property tax in the financial year 2015-16 against the target of Rs 40 crore.
SCB had scripted success in 2014-15 when it collected Rs 24 crore, registering more than 40 percent growth rate over the previous year. Basing on the same estimates, SCB authorities had fixed a target of Rs 40 crore for 2015-16 but with just 75 percent of the target achieved, the SCB administration is disappointed.
“Though we had not achieved the set target, there was a considerable growth in property tax collection during 2015-16. Rs 30 crore was collected, a growth of 25 percent. We feel that revision of property taxes this year has led to delay in tax evaluations and payments, ultimately leading to a gap between actual collection and target,” said Syed Akbar Ali, SCB tax superintendent.
“But we have reviewed the reasons for failing to reach the target and have decided to crack down on defaulters,” he said.
Property tax is a major source of revenue to SCB and accounts for more than 35 percent of its revenue. Therefore, SCB administration has been placing special emphasis on property tax collection. Besides creating widespread awareness on the importance of payment of property tax, defaulters are being dealt with sternly.
In spite of all these efforts, tax collection has reached nowhere near the target, prompting officials to issue red notices to more than 5,000 defaulters.
“Property tax is an important source of revenue to SCB and is vital to its survival. It provides funds for taking up development and basic amenities works in Cantonment limits. Therefore, official should take all steps to collect property tax and act sternly with defaulters. The SCB administration should take steps to collect property tax dues from the Airports Authority of India (AAI) which owes Rs 13 crore towards property tax to SCB,” said S Keshava Reddy, vice-president of SCB.