The Hindu        21.01.2011

GVMC to launch drive on property tax

Corporation to issue ‘Red notices' to defaulters and invoke penal provisions

Having been unable to garner at least half of the property tax for the first half-year, the Greater Visakhapatnam Municipal Corporation now will go all out to realise the much-needed revenue with the Mayor taking an unequivocal stand of collecting the hiked tax.

Of the estimated Rs.70 crores for the first half year from property tax after a hike has been effected, the corporation has so far realised around Rs.30 crores.

“We followed a sort of go slow approach during the past few days without pressing for the tax payment what with the corporation's special general body meeting on the tax issue. Insisting on payment even as the meeting was scheduled for Wednesday would have sent contradictory signals. Now that it is over we will go ahead with our efforts to collect the tax,” said an official on Thursday.

Of the 3.3 lakh assessees, 1.3 lakh have so far paid the first half year's tax netting the Rs.30 crores.

The dilemma over government taking some decision favourable to tax payers has so far led to sluggish payments. The general trend in the city has also been to pay in the last three months of the financial year. The first half-year's tax is generally paid with interest. Sources say those paying the first instalment now have to pay it with interest.

About 1.3 lakh demand notices for the second instalment have been issued and the issue of the remaining notices has been going on. However, of the 45,000 revision petitions filed, 17,000 are yet to be disposed of.

Fresh demand notices will not be served to them.

The GVMC will now launch an intense campaign with the Finance wing drafting the services of staff from Town Planning and Public Health wings also. GVMC would issue ‘Red notices' to defaulters and invoke penal provisions like cutting off water supply if they do not comply, say officials.