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MMC clueless about Rs 1cr tax arrears

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The Times of India 04.11.2009

MMC clueless about Rs 1cr tax arrears

MAPUSA: Even as the Mapusa Municipal Council is grappling with a severe resource crunch, the civic authorities are caught napping over its revenue generating strategies. The civic body has barely managed to pool in Rs 86 lakh as house tax this fiscal so far, considering another Rs 66 lakh which is yet to be collected. Further more, Rs 40 lakh as rent charges are yet to be recovered from various commercial establishments in the city.

In another startling disclosure, as per a statement TOI was privy to, it was discovered that the civic body had failed to tap house tax arrears of more than Rs 1 crore.

The civic authorities, who were clueless on ways to tap the arrears, have managed to collect a measly Rs 20 lakh this fiscal.

The council has now started issuing demand notices (a warning letter with a fine) to defaulters and the collection has begun to trickle in, sources disclosed.

A visibly annoyed chief officer Raju Gawas refused to accept the figures on house tax arrears and the current house tax position prepared by his office. "These figures are not right. I need to go through the records," he said, debunking figures prepared by the council staff.

"From the time I took over in July, the council has collected Rs 47 lakh by way of house tax," he said, adding, "The process is on and I am confident we will also be able to erase more than 50% deficit of the house tax arrears."

None of the officials sounded convincing in their explanation on the poor collection of arrears, but sources disclosed that earlier no serious efforts were made to collect them.

"Part of the problem comes when the premises remain closed. There are many flats which remain under lock and key. There's no way we can approach these owners," said Ramchandra Mandrekar, the accounts taxation officer.

Nevertheless, we have begun issuing demand notices to defaulters and people have started to pay, he added.

Chairperson Rupa Bhakta was equally clueless on the issue. "I do not know about the arrears but I suppose house tax collection is going on smoothly," she said.

The chief officer described various initiatives taken by him to improve the financial condition of the council.

He disclosed that the council had so far collected Rs 10 lakh by way of occupancy fee from new constructions in the city.

He had introduced the concept of occupancy fee soon after taking charge as CO of Mapusa municipality. He had to face stiff opposition from a section of the councillors for introducing the fee.

"Almost all the councils impose occupancy fee in their jurisdictions. It was only in Mapusa where it was not introduced," he said.