The Times of India 03.04.2013
NMC to probe ‘selective’ property tax waiver
NASHIK: The Nashik
Municipal Corporation (NMC) has directed the property tax department to
probe tax waiver in favour of some private firms in the construction and
hospitality sectors.
The issue was raised by the leader of the opposition, Sudhakar Badgujar, at the last general body meeting on March 18. He had accused the deputy commissioner (taxes) of selectively waiving property tax to the tune of Rs 2 crore for a construction firm and Rs 6 lakh for a hotel.
"We will soon conduct a thorough probe into the matter. To make the taxation process more transparent, we have already started maintaining computer records of all the properties and giving code numbers. This will help us in assessing all the properties in a systematic way," municipal commissioner Sanjay Khandare told TOI.
Mayor Yatin Wagh said, "It is a matter of great concern" and that he had asked the municipal commissioner to look into the matter and submit the details at the forthcoming next general body meeting.
"NMC collects property taxes from the residents, industries and shops and the tax has been classified into residential and non-residential. There is a difference in that too where the industrial estates under the Maharashtra Industrial Development Corporation (MIDC) are concerned, especially Satpur and Ambad which comes under the NMC limits. They collect property tax of Rs 4.40 to Rs 4.45 per square metre from industries, while business houses are charged Rs 11 per sq metre. Rules for commercial property should be the same," the leader of the opposition said.
Badgujar said the NMC charges property tax of Rs 22 per sq metre for hotels, but they have been collecting very less from some of them, waving as much as 50%. "This is wrong and illegal. It is causing financial losses to the civic body. One of the city hotels, built on an area of 8,261.50 sq metres, was charged only Rs 6.91 lakh, whereas the actual property tax sums up to Rs 19.62 lakh. Moreover, property tax worth Rs 2 crore was waived to favour a construction firm without taking permission from the municipal commissioner or the general body," he said.
The issue was raised by the leader of the opposition, Sudhakar Badgujar, at the last general body meeting on March 18. He had accused the deputy commissioner (taxes) of selectively waiving property tax to the tune of Rs 2 crore for a construction firm and Rs 6 lakh for a hotel.
"We will soon conduct a thorough probe into the matter. To make the taxation process more transparent, we have already started maintaining computer records of all the properties and giving code numbers. This will help us in assessing all the properties in a systematic way," municipal commissioner Sanjay Khandare told TOI.
Mayor Yatin Wagh said, "It is a matter of great concern" and that he had asked the municipal commissioner to look into the matter and submit the details at the forthcoming next general body meeting.
"NMC collects property taxes from the residents, industries and shops and the tax has been classified into residential and non-residential. There is a difference in that too where the industrial estates under the Maharashtra Industrial Development Corporation (MIDC) are concerned, especially Satpur and Ambad which comes under the NMC limits. They collect property tax of Rs 4.40 to Rs 4.45 per square metre from industries, while business houses are charged Rs 11 per sq metre. Rules for commercial property should be the same," the leader of the opposition said.
Badgujar said the NMC charges property tax of Rs 22 per sq metre for hotels, but they have been collecting very less from some of them, waving as much as 50%. "This is wrong and illegal. It is causing financial losses to the civic body. One of the city hotels, built on an area of 8,261.50 sq metres, was charged only Rs 6.91 lakh, whereas the actual property tax sums up to Rs 19.62 lakh. Moreover, property tax worth Rs 2 crore was waived to favour a construction firm without taking permission from the municipal commissioner or the general body," he said.
