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Online payment of holding tax from August 1

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The Hindu              29.05.2013

Online payment of holding tax from August 1

Staff Reporter

It is part of the government’s e-governance initiative.

The State government plans to introduce online payment of holding tax in three municipal corporations of the State from August 1.

Introduction of online payment is part of the government’s e-governance initiative. The current holding tax alone will be collected online and a decision on arrears would be taken after reconciliation with property holders.

“At present, the tax is being collected manually. We are facilitating online payment of holding tax as an alternative option for taxpayers,” said Sanjib Mishra, Commissioner of Bhubaneswar Municipal Corporation.

Sources in the Housing and Urban Development Department said the online collection of holding tax might not evoke encouraging response initially. “As people get gradually used to technology, the initiative will gain popularity in future.”

Mr. Mishra said even if 5 per cent taxpayers turn up to pay holding tax in the beginning, it would be very encouraging.

The BMC has already assessed 80,000 properties in the Capital city. It will be vetted by field-level staff. The corporation had collected Rs. 20.72 crore on account of holding tax collection during the year 2012-13.

A senior official, on condition of anonymity, said the government should first make taxpayer aware, give incentives to honest taxpayers, and penalise defaulting citizens. “Once property holders are brought into the tax bracket, the situation with regard to tax collection will improve.”

Along with the BMC, the Cuttack Municipal Corporation, and the Berhampur Municipal Corporation are likely to implement the online collection from August 1.

At present, IT major Tata Consultancy Service is assisting the State government in launching the e-Municipality programme in 44 urban local bodies in the State. Besides the proposed online collection of tax, online grievance registering mechanism relating births and deaths, collection of trade licence and water connection charges are proposed to be rolled out in the month of August.

After strengthening of e-Municipality initiative in the 44 urban local bodies, the remaining 62 ULBs would be covered under the e-governance programme.

At present, the tax is being collected manually. Online payment is an alternative option for the taxpayers.

Sanjib Mishra Commissioner, Bhubaneswar Municipal Corporation.