The Hindu 07.10.2013
BMC moves to collect arrears of holding tax
The Berhampur Municipal Corporation (BMC) authorities have launched a drive to collect the long-standing arrears from defaulters of holding tax.
According to BMC Commissioner Ajit Mishra, as per an assessment the pending holding tax arrears amount to around Rs. 3 crores. “We have targeted to collect at least Rs. 1 crore arrears from the defaulters before October,” he said. The BMC is now trying to increase its revenue which is on the decline.
According to a study, in 2001-02 the income growth rate of the BMC was 17.4 per cent. But during 2013-14, the projected income growth rate of this urban body came down to -3 per cent.
Notices issued
The BMC has already issued notices to the defaulters of holding tax in the city. As per the findings, some prominent citizens and business establishments of the city, including some hotels, are in this list. Holding tax of several old assets in the city has not been revised despite the fact that those properties have been remodelled with increase in plinth area. “There has been revision of holding tax of properties in the city in 2001-02 but for some reason several properties have not got their holding tax revised,” says Sangram Panda, the executive magistrate and slum development officer of the BMC.
At present the BMC has divided the city into 16 parts for proper assessment and calculation of holding tax. The regions of the city have been categorised as commercial, semi-commercial and residential areas for assessment of holding tax.
To increase income, the BMC has also initiated a special drive regarding trade licence. The BMC authorities have also found that 90 per cent of the trading units, shops and business establishments in this major trading centre of Odisha were not registered with the BMC and are not paying the annual trade licence fee. During the special drive to make all trading units pay the trade licence fee, the BMC has till date collected Rs. 58 lakh, while it had targeted to collect around Rs. 25 lakh from it, according to Mr. Mishra.
