The Indian Express 14.09.2009
AMC offers upto 100% interest rebate to tax defaulters
Alarmed by the sluggish tax recovery in the first half of the current financial year, the municipal authorities have once again offered interest rebate to tax defaulters who are yet to pay dues under the old formula. Under the pre-2000 old formula, they owe the civic body a hefty Rs 600 crore.
The AMC has come out with interest rebate of 100 per cent on slums and chawls, and 50 per cent from other residential properties.
By way of concession, it has offered to charge penal interest on dues at 8 per cent against the 18 per cent charged on default. The scheme will be in force from September 15 to November 13 to recover dues to the tune of Rs 250 crore, excluding those from closed textile mills.
It is for the first time in its history that the civic body has been compelled to offer interest rebate to defaulters in just six months. The move will enable it to show a respectful collection figure by the end of the third quarter.
The recovery due may be Rs 600 crore under the old formula, but the AMC cannot hope to recover beyond Rs 250 crore because a large chunk is due from closed textile mills, which have entwined with the AMC in legal tangle.
Therefore, they have been excluded from the scheme, say civic officials. Standing committee chairman Asit Vora said there was nothing unusual in offering rebates frequently.
“What to do when people do not pay taxes at all?” he lamented. He said there was nothing wrong in offering interest rebates if the recovery got a boost this way. The standing committee has already passed the proposal in its previous meeting.
