Business Standard 08.09.2009

The Orissa government today approved an amendment to the Orissa Development Authority Act and Orissa Town Planning and Improvement Act, reducing the stamp duty in urban areas to 5 percent from 8 percent at present and waiving the collection of additional 3 percent as town area surcharge.

This measure has been taken as part of the state government’s reform commitment to the Union government on the implementation of the Jawaharlal Nehru Urban Renewal Mission (JNURM), chief secretary T K Mishra said.

Briefing the media after the meeting of the state cabinet, Mishra said, the cabinet in its meeting on 22 February had approved the reduction in the stamp duty and the waiver, the necessary ordinance couldn’t be brought out due to the model code of conduct in force during the last general elections.

He said, at present, the stamp duty is 8 percent in urban areas and an additional 3 percent is collected as town area surcharge. The cabinet accepted a proposal of the housing and urban development department to reduce stamp duty to 5 percent from 8 percent while the 3 percent town area surcharge will be abolished.

This will bring down the cost of registration of land in the urban areas and will lead to better compliance. Out of the 5 percent collected as stamp duty, the state government will retain 3 percent with it while the remaining 2 percent will be provided to developmental authorities and improvement trusts in urban areas, he said.

The cabinet chaired by the chief minister Naveen Patnaik also approved a proposal of the state Panchayatiraj department to contribute 10 percent of the hard cash Kendu leaf grant to the Kendu leaf pluckers and binding workers welfare fund. So the fund will be getting Rs 1 crore annually from Rs 10 crore Kendu leaf grant obtained by the Panchayatiraj department. The move is expected to benefit more than 2 lakh workers engaged in plucking and binding Kendu leaf.

The Hindu 03.09.2009

GVMC steps up tax collection efforts

Staff Reporter

VISAKHAPATNAM: The Greater Visakhaptnam Municipal Corporation is facing a downturn in its revenues and taking a number of measures to improve the situation.

According to sources, the average monthly receipts have dropped from Rs.15 crores to Rs.13 crores to Rs.14 crores. The regular works taken up by the corporations have also been scaled down. “Earlier the regular works used to be taken up at a cost of Rs.15 crores to Rs.20 crores. Now they are prioritized and taken up at an average outlay of Rs.10 crores,” said an official. The payments due to contractors still stand at Rs.40 crores to Rs.45 crores. The corporation intend to clear Rs.4 crores bills pertaining to March, 2009 this month. The revenue receipts mainly from property tax generally pick up in the last quarter of the year. After the interest waiver in property tax given to defaulters in 2007-08 and 2008-09, people prefer to pay during the end of the financial year to take advantage of the waiver, said an official. The two waivers cost the GVMC dearly as it lost the interest payment.

The GVMC revenue authorities have taken up a drive to realize the tax. “We have identified the top defaulters zone and ward-wise and issued warning notices to them.

Attachment notices are also being issued to chronic defaulters and in case they do not respond water supply will be stopped,” Additional Commissioner (Finance) P. Purnachandra Rao said. The tax collecting staff have already completed a door-to-door campaign. Shops and other commercial establishments are visited by the GVMC staff and officials told to pay up or face action.

The online tax payment is monitored and if in any zone payments are lagging behind, the official concerned is contacted and asked to act.