COIMBATORE: The Coimbatore City Municipal Corporation (CCMC) has managed to collect only about 50% of the overall tax demands in the last FY 24-25. Out of the total demand of Rs 1,350 crore, only Rs 682 crore has been collected.
Sources said that the CCMC has collected approximately Rs 467 crore from property tax alone out of a total demand of Rs 597 crore, which includes both current and arrear dues. Out of the total pending arrear amount of Rs 124 crore, the CCMC officials had managed to collect only a mere Rs 41 crore (33.35%). A total of Rs 426 crore (90.1%) has been collected against the total current demand of Rs 473 crore.
While this figure may seem relatively strong when isolated, the overall tax collection scenario paints a grim picture, with many other revenue streams severely underperforming.
Several other revenue streams showed abysmal collection percentages, sources added.
According to official data, the CCMC has managed to collect just 50.5% of its overall tax demand for the 2024-25 financial year.
Out of the total demand of Rs 1,350 crore, the civic body faces a shortfall of Rs 668 crore. Civic activists blame this difference on official lethargy and poor tax enforcement.
What’s more concerning is the alleged secrecy maintained by the CCMC in recent years regarding tax collection figures.
According to insiders, the civic body has refrained from releasing official data for the past two years due to internal discrepancies and a poor track record in tax recovery. Critics argue that this lack of transparency is preventing public accountability and corrective measures.
Officials, however, have been accused of a lethargic approach, contributing to the poor recovery rates. With mounting arrears and increasing fiscal responsibilities, CCMC’s inability to collect the overall tax demand could have long-term consequences on the city’s development projects and essential civic services.
Sources revealed that the lack of stringent action by the CCMC against individuals and private firms that have been maintaining tax arrears over the years is one of the main reasons behind miscreants not paying taxes on time.
S Vivin Saravan, a social activist, said, “Earlier, the civic body used to place large dump bins in front of the buildings and private firms that haven’t paid their taxes on time and had a history of pending tax arrears. However, such actions are missing now. While the civic body turns a blind eye to corporate companies that don’t pay their taxes, the CCMC officials, on the other hand, conduct drone surveys for hiking taxes of the common man and serve notices to residents with small houses.”
Meanwhile, multiple attempts by TNIE to contact CCMC commissioner M Sivaguru Prabakaran went in vain.