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HDMC to start door-to-door tax collection

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The Hindu             26.06.2013

HDMC to start door-to-door tax collection

Staff Correspondent

Bill collectors to issue notice, collect property tax on the spot

Come July, property owners in parts of Hubli-Dharwad can paying property tax at their doorstep. In a first-of-its-kind initiative, the Hubli-Dharwad Municipal Corporation (HDMC) will launch door-to-door collection of property tax from July 1.

Bill collectors appointed by the corporation will visit houses and issue notice for the annual property tax. Earlier, notice to defaulters was issued manually in the first three months of the financial year.

However, the corporation faced problems in collection due to lack of manpower.

From July, point-of-sale (POS) machines will be provided to bill collectors who will not only issue the tax notice but also collect the money and issue receipts to property owners.

Three bill collectors, who are ward clerks of the HDMC, have been trained to use the POS machines. Two of them will make visits in Hubli and one will do the same in Dharwad.

Under the new system, tax will be computed as per database records. Taxpayers can make the required payment to the collectors in cash on the spot, which will be posted to their khata (property tax account). Failure to pay taxes would lead to the issuing of warrants and confiscation of property.

HDMC Joint Commissioner Veerendra Kundagol said, “This project will prove beneficial in two ways. First, the notice issued by collectors will be acknowledged by the recipient immediately, thus avoiding miscommunication. Secondly, it will take care of the procrastinating attitude of the public.”

Mr. Kundagol claimed that often there was a conflict between the authorities and the public, as the latter failed to receive notice or got it late. The new system would put an end to such discrepancies. He was confident that it would accelerate tax collection, and thereby increase investments in developmental projects.

Currently, three PSO machines procured from a local vendor will be used. The authorities are confident about the success of this project and plan to launch it on a larger scale if they receive a positive response.

The HDMC achieved a record collection of property tax during the previous financial year, with a collection of Rs. 32.6 crore.

This year it plans to collect Rs. 35 crore to Rs. 36 crore. By May-end, the corporation had already collected over Rs. 10 crore.