VIJAYAWADA: The lockdown enforced by the Centre to contain the spread of coronavirus has dented the revenue of Vijayawada Municipal Corporation (VMC). The civic body’s revenue saw a decline of 60 per cent during the current fiscal, making it difficult for the Corporation to complete various ongoing infrastructure projects under its ambit. As per the information provided by the revenue wing officials of VMC, the civic body missed most of its revenue targets, including property tax by a huge margin. The meagre revenue from vacant lands and water and drainage connections have also failed to fill the coffers of the Corporation. The VMC has targeted a revenue of Rs 125 crore as property tax through 2.5 lakh assessments.
However, due to the two month Covid-19 induced lockdown, the civic body has managed to earn a meagre Rs 25 crore as against Rs 50 crore revenue earned during the corresponding period last year. Similarly, the civic body earned Rs 13.5 crore from the Vacant Land Tax (VLT) as against the targeted revenue of Rs 100 crore from 15,000 assessments.
Only Rs 4 crore revenue was earned through water tax as against Rs 10 crore earned during the corresponding period last year. The revenue target for water tax is Rs 56 crore from 1.5 lakh connections. When it comes to drainage tax, the civic body has so far earned Rs 4 crore as against Rs 25 crore through 1.25 lakh connections. Technical glitches in online tax payment also compounded the woes of VMC. VMC Deputy Commissioner (Revenue) D Venkatalakshmi told TNIE that the civic body earns a major chunk of revenue through property tax.
However, during the lockdown period, business activities came to a standstill and the public are not in a position to pay taxes. In order to motivate public to pay taxes on time, the Corporation is offering 5 per cent discount on payment of property tax on or before July 31, she said. When asked about the technical glitches in online property and vacant land tax payment, Venkatalakshmi said at present, the services are temporarily disrupted. These services are linked with Commissioner and Director of Municipal Administration (CDMA).
While the water and sewage charges need to be paid separately as the billing for both is generated bi-monthly, property tax needs to be paid every six months. Due to temporary disruption in online payment of property and vacant land tax, two additional counters each were set up at the three VMC circle offices in the city, she said, adding that one more additional counter was set up at VMC administrative office.