The Times of India           30.07.2013

AMC falls short of 250-crore local body tax target

AURANGABAD: Amid steep opposition to the local body tax (LBT) in various cities of the state, the Aurangabad Municipal Corporation (AMC) on Monday posted an LBT collection of Rs 45.99 crore in the first quarter of the current fiscal against a target of Rs 250 crore.

Taking note of the low collection rate, standing committee chairman Narayan Kuche on Monday urged municipal commissioner Gokul Maware to take stern action against the officers responsible. He said the drop in the main revenue generation source of the civic body would negatively affect the city's growth. He urged Maware to accelerate the LBT process.

Kuche alleged that inefficiency in the LBT department was mainly responsible for the poor show. "In the last two fiscals, the city had set an ideal example of LBT which the other cities were trying to follow," he said.

However, Mahavir Patni, LBT in charge of the AMC, said that the figure was not very discouraging. "We are already in receipt of Rs 45.99 crore in the first quarter, which is normally not seen as a major contributor. We hope to post satisfactory level in the following quarters," he said.

In addition to this, Patni said that in 2011-13 the LBT collection was at Rs 162 crore which surged in 2012-13 to Rs 180 crore. "This year, the administration had set a target of Rs 200 crore for LBT collection but the general body had increased it to Rs 250 crore," he said.

Justifying the AMC's efforts, Patni further said that most of the traders were on the back foot in the first quarter due to the recent drought situation in the region. "The sale of four-wheelers, two-wheelers, domestic appliances, etc is passing through a bad phase. This is bringing down the business volume in the city," he said.