The Hindu 13.05.2013
Taxing ‘encroachers’ seems a delayed affair
Each year the GHMC could be richer by at least Rs. 50 crore. While there is this threat to ‘rationalise’ property tax on regular payers, the same enthusiasm is not visible in taxing properties that have come up on government lands or acting in cases where the land ownership is in dispute.
The rules of the civic body do clearly state that any property – private or government – can be taxed. Even unauthorised constructions and those built in violation of the sanctioned plan are liable to pay property tax. At the same time, the GHMC Act also states that paying property tax does not give regularisation rights to property owners. According to senior Municipal officials, even after paying property tax the status of the property does not change.
Despite the law being clear, the Municipal Corporation has been wary of imposing property tax on constructions that have come up on government lands. “The Vigilance and Enforcement Department has made a few critical comments on some cases wherever the tax has been collected, implying that the GHMC was regularising properties by doing so,” the officials explained.
A few months ago, GHMC Commissioner M.T. Krishna Babu sought clarification from the government on levying property tax on illegal constructions while reiterating the rules. “We can start collecting tax only after receiving the government’s clarification, otherwise our people are scared to touch such constructions,” senior officials said. They hope to get a response from the government so that they can prepare notices at the beginning of the financial year. “But, if recent experiences are anything to go by, it may not come that soon,” they said. Indeed, they have a point. For more than a year now, the civic body has been awaiting official orders on transfer of 10 per cent motor vehicle tax and profession tax collected within the city, traffic offences fine and property tax dues. Incidentally, all these have been given the go-ahead by the Chief Minister.
Officials are not keen to tax properties that have come up on govt. lands or to act in cases where ownership is in dispute.
