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GVMC aims higher property tax collection

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The Hindu                31.05.2013

GVMC aims higher property tax collection

Staff Reporter

Armed with technology and base data obtained from the earlier Geographic Information System (GIS), GVMC is launching a major revision exercise to improve its property tax realisation by around Rs.60 crore.

However, the residential assessments will be spared and 38,839 commercial and 13,735 mixed properties will come under the scanner of the GVMC, according to Municipal Commissioner M.V. Satyanarayana.

He told reporters here on Thursday GIS data that projected an increase of Rs.20 crore revenue from 33,595 assessments, the applications rejected and pending under Building Penalisation Scheme (BPS), for properties where occupancy certificate was not produced and unauthorised constructions identified by the Town Planning Department would come under the drive. The Commissioner assured that the 3.2 lakh residential assessments would not come under the drive.

A pilot study on the efficacy of using tablet PCs had already been done during 2012-13 and it showed improvement. The Revenue officials would go with the PC to the building and after obtaining the existing tax would physically verify the measurements, use (commercial/residential) and feed it into the PC. Since everything was transparent it is difficult to contest it even in a court of law.

In one such instance, where gross deviations have been observed in plinth area and use and an additional floor not under tax net, the half-yearly tax of Rs.25,658 was revised to Rs.1.86 lakh with a penalty of 25 per cent for the fourth floor was revised to Rs.2.33 lakh, Mr. Satyanarayana said. Besides, the D&O trade licences would be linked to assessment to improve revenue from the trade fee.

Collectible demand

Of the collectible demand of Rs.167.43 crore in the previous year, Rs.24.79 crore has been pending of which Rs.5.5 crore is the accumulated demand of 20 minority institutions.

Mr. Satyanarayana said property tax had an uncollectible demand of Rs.112.2 crore of which Rs.62.54 crore, including Rs.47.8 crore of the steel plant, was caught in court cases. Demand from various government departments is Rs.25.73 crore. Service charge (instead of property tax) of Rs.5.43 crore has been pending from Central government organisations and PSUs.

Deputy Commissioner (Revenue) R. Somannarayana was present.