The Times of India                08.10.2013

Civic body revenue doubles in 7 years

SURAT: A marginal increase in property tax coupled with increase in user charges once in five years and a door to survey leading an increase in number of tax payers has resulted in Surat Municipal Corporation's (SMC) revenue going up more than double in just seven years. During the current financial year, SMC will earn more by way of property tax collection and user charges than the amount given by state government in lieu of octroi.

Octroi was abolished in 2007-08 when the civic body's revenue by way of property tax and user charge was to around Rs 280 crore. In that year SMC collected Rs 485 crore as octroi, which was nearly double than its tax collection. "In a way we depended on octroi income for our survival, existence and development. Our developmental work would have suffered if we had not taken steps to increase our revenue and bring about financial reforms," an official said.

In the last five years, the number of tax payers has increased from 14,16,500 to 16,52,700. While the number is up by 15 per cent, the revenue jump is more than 200 per cent. tnn

"We have reached a stage where our revenue from tax collection is higher than the money paid in lieu of octroi by the state government. This revenue will be realized year after year as more households are covered under property tax and user charges," the official said. The state government pays Rs 565 crore per annum to SMC in lieu of octroi and the amount has not risen in the last five years.