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Corporation yet to hike library cess

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The Hindu 19.08.2009

Corporation yet to hike library cess

K. Lakshmi

CHENNAI: The Chennai Corporation is yet to hike library cess on property tax from 5 per cent to 10 per cent as directed by the State government last year, according to sources at Chennai District Local Library Authority.

Sources in the LLA said that on an average, nearly Rs. 10 crore was being collected as the cess in the city. Also, many civic bodies across the State, including the Corporation, owe a huge amount collected as library cess to the LLA. Last year, only Rs. 50 crore cess was remitted by the local bodies as against a demand of Rs. 75 crore.

As the Public Libraries Department depended on this revenue to carry out developmental activities, prompt remittance were important. While 25 per cent of the amount collected is allocated towards purchase of new books, 50 per cent is towards improvement of infrastructure. The remaining amount was used for recurring expenditure.

With a portion of the funds of Chennai District LLA being diverted towards the construction of State Library Complex in Kotturpuram, increase in revenue collection would ensure smooth functioning of the department, the officials added.

The cess remitted by the Chennai Corporation varied from Rs. 20.09 crore in 2006-07 to nearly Rs. 9 crore in 2007-08 and Rs. 13.6 crore last year. In the current fiscal, the amount remitted between April and July is Rs. 85 lakh.

At present, there is no paucity of funds, and the Chennai District LLA is managing with a term deposit of Rs. 40 crore, which was created from a portion of revenue every year. “There is no proper mechanism to assess the demand and collection of library cess in the department. We would know the complete details only during the Local Fund Audit conducted every year,” the officials said.

Mayor M. Subramanian said that the Corporation would soon hike the library cess and at present, the civic body is reviewing the property tax for under-assessed properties. “We have identified 40,000 such commercial buildings. Once the process is completed, the cess would be hiked as per the government order”, he said.

Last Updated on Wednesday, 19 August 2009 04:23