Deccan Herald 02.07.2013
31 pc of urban property owners in Karnataka do not pay taxes
There are 12 lakh properties under 213 civic bodies
Urban local bodies (ULBs) often cite
lack of funds as the prime reason for not providing infrastructure
facilities in towns and smaller cities.
But these
‘cash-starved’ civic bodies are not collecting tax from at least 31 per
cent of the properties under their jurisdiction despite scientifically
collecting data on not assessed properties through the global
information system (GIS).
As part of the e-governance
initiatives in ULBs, the Karnataka Urban Infrastructure Development
Corporation (Kuidfc) has identified and alloted distinct identity number
to each private property including vacant lands in all the 213 ULBs,
barring Bangalore city.
In the Phase II, between 2009-2011 under the Karnataka
Municipal Reforms project, funded by World Bank, survey was conducted
in 164 ULBs. Of the 15,22,290 properties, 4,00,998 were found to be not
paying property tax. In all, the survey indicated that 1.2 million
properties, nearly 32 per cent of the total properties, were not
assessed for property tax payment. These properties are considered as
illegal.
Despite having this data, till today ULBs are
collecting the tax under the old system of self assessment of tax (SAS).
In other words, the illegal properties continue to remain outside the
tax net of the department of Municipal Administration (DMA). An
exclusive wing, Municipal Reforms Cell, was entrusted with the task of
bringing in reforms in tax collection in ULBs.
The Cell, using
the MIS data base, maps and GIS, has identified the properties. The
entire information such as property number, plinth area, built-up area,
ownership, occupants and taxes paid since 2002 has been recorded and the
same is available with the DMA. The system is the largest in the
country till date.
Nexus alleged
Official
sources said that unless the ULBs are pro-active and there is strong
political will, the tax net can’t be widened. While one argument is that
if tax is collected from illegal property owners, then it is like
legalising the same.
With the government not taking any decision
on regularising or demolishing illegal structures, the owners are
getting away without paying the tax while enjoying facilities such as
water and power supplied by the government.
It is not that the
tax collection is not increasing in the state. But, despite the
increase, at least 31 pc of the properties are not under the tax ambit
though tax collection is major source of revenue for the civic bodies.
Tax
demand for 2007-08 was Rs 1.91 crore while the collection was Rs 1.12
crore among the ULBs. The demand for 2010-11 was Rs 355.35 crore, while
the collection was just Rs 290 crore, as per the DMA annual reports.
The
Cell, as part of the Aasthi-GIS-based property tax information system,
has also introduced online tax calculation as well as payment with debit
or credit cards.
Delay
Defaulters can be tracked and notices
can be issued automatically. But so far the online system has been
installed in 104 ULBs. There has been a delay of not less than a year in
introducing the system due to lack of technical manpower.
Till the system is put in place in all the ULBs, the tax base will not increase, officials at DMA argue.
But,
Kuidfc officials counter this argument saying that when illegal
properties have already been identified, nothing stops ULBs from
collecting tax even under the SAS. The laxity is because of many reasons
including political interference and nexus between tax collection
officials and property owners.
The digitised property details are
not being utilised. By now, the tax collection should have gone up by
30 to 40 per cent, officials said.
Districts Properties Properties
before survey after survey
Dakshina Kannada 1,84,166 2,96,659
Bellary 52,210 97,923
Bidar 27,951 51,158
Gulbarga 35,871 1,20,054
Koppal 19,389 29,948
Raichur 43,962 77,000
Yadgir 6,949 23,155
(Source- Department of Municipal Administration)
