Urban News

Ludhiana: Plans to generate Rs 452 crore as income through house tax, VAT, leased property and entertainment tax

The House of the Ludhiana Municipal Corporation today passed Rs 791-crore budget for 2010-11 fiscal. To fill its coffers and generate revenue for the cash-strapped corporation, Rs 452 crore has been earmarked as income from various sources apart from seeking Rs 144.3 crore grant under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme from the Centre. Although no new taxes have been imposed, the House has suggested to revise house tax which is Rs 5 per square feet at present. A proposal was also floated to increase the rent on MC properties as the corporation earns meagre Rs 25 lakh a year from all its prime properties in the heart of the city. The councillors also proposed to enhance advertisement tax from present Rs 5 crore to Rs 6.5 crore.

“House tax will also be replaced by property tax but that is still in the drafting stage pending with the state government. It will be self-assessment of the tax on per square yard rate fixed by deputy commissioner in a particular area,” said MC Commissioner A K Sinha.

After looking at the potential of the city, Rs 90 crore has been kept as the income from house tax as against Rs 55 crore in the current year. The department has collected Rs 40 crore till December 2009.

With the enhancement of VAT from 4 per cent to 5 per cent, the MC will get an additional income of Rs 46 crore as the share of VAT against Rs 179 crore received in the current year. The income from octroi on electricity will be increased to Rs 26.4 crore in the coming year

The MC also plans to encash on the advertising industry by increasing the entertainment tax.

Councillor Rakesh Prasher proposed to regularise the illegal water and sewer connection so as to earn more income. The MC earned only Rs 73,000 as slaughter house fee till December 2009 but it has a target of Rs 5 lakh in the next fiscal.

Meanwhile, the MC commissioner said, “Four companies have showed interest in making slaughter house on BOT basis on the MC land.” However, this proposal did not get much response from councillors.

The MC’s share from various taxes will be Rs 40.5 crore by March-end while next year it is expected to be Rs 45 crore. The corporation also plans to get Rs 150 crore as loan from HUDCO in the coming financial year.

Few proposals
* To induct one chief fire officer, 68 firemen, 17 drivers with annual expenditure of 14.8 crore

To increase 182 drivers with expenditure of Rs 3.04 crore per annum

*Increase in staff in O&M section with annual expenditure surge of Rs 7.05 crore

*To increase the mayor and commissioner office entertainment allowance to Rs 10,000 and Rs 5,000 respectively.

*To privatise tehbazari branch of MC

*Rs 6 crore for development of parks

*Absenteeism of employees was discussed. Gardners, sweepers who are on MC rolls are working more in officials’ houses rather than in areas allotted to them

*Gill chowk flyover to be made operational by April-end

Mohalla sanitation committees to be dissolved, MC nod to regularisation of Class IV employees
Finaaly the Municipal Corporation today gave a green signal to the regularisation of 3,374 Class IV employees in the city. With this, the MC has dissolved mohalla sanitation committees.

However, the new employees will be put on rolls in phases and that too on seniority basis.

This was stated by Mayor Singh in the budget meeting of the Municipal Corporation held today.

Sources said in the first phase 500 employees, who are working with MC for more than 8 years will be put on rolls. The rest will continue to work on daily wages till the time they are not regularised.

Laksman Dravid, union leader of safai karamcharis, said, “A total of 204 container attendants, 169 sweepers and 28 drivers are working for more than 7-8 years and hence they should be put on rolls first. The CM has also assured that all will be regularised as and when funds are given to the corporation for their salaries.”

Already about 1,200 confirmed Class IV employees are working in the corporation whose annual expenditure is Rs 11 crore. But with the gradual induction of workers, the MC will not have to shell out crores in one go.

However, councillor Prem Mittal said once the daily wagers are regularised, they should report to work on time as many confirmed employees miss their duties on regular basis.

If all the employees are regularised in one go, it will burden the MC with Rs 25. 47 crore per annum.