The Hindu 05.01.2010
Municipality plans to revise tax, other charges
Serena Josephine. M
| Move aimed at augmenting revenue |
Local body has also proposed to introduce city entry fee
Annual revenue of at least Rs. 35 crore needed, says official
PUDUCHERRY: A thorough revision of taxes and charges levied by the Puducherry Municipality has been proposed. The revision is aimed at augmenting the municipality’s revenue, which is about Rs. 20 crore a year at present.
The proposed modifications in tax and fee structures will be placed before the council for approval. On being cleared, it will be submitted to the government for its consent, officials said.
Revisions have been proposed for property/house tax, entertainment tax, cable television, profession tax, advertisement tax, and charges being collected by the municipality for various services such as stall rent, trade licences, parking fees, “adikasu,” pavement rent, stamp duty and issuance of birth/death certificates.
The municipality has also proposed to introduce city entry fee, user charge for garbage collection, fee for installation of telecom towers and cycle/motorcycle parking on major roads.
“The taxes have not been revised for a long time. As a result, house tax, for instance, has become very low compared to previous assessment before 2005. There has been 30 to 40 per cent drop and the value of tax for houses is very low,” Municipal Commissioner D. Asokan said.
Only a nominal increase has been suggested for other taxes, he said, adding, “This proposal is to augment revenue. We need annual revenue of at least Rs. 35 crore for carrying out routine work.”
For property/house tax, the municipality has proposed to withdraw grant of 50 per cent concession on rent value based on location and construction, and suggested levying tax on the annual rent value basis to scale up revenue to Rs. six crore a year. Profession tax of Rs. 600 has been proposed for those with half-year income of Rs. 15,000 to Rs. 25,000 and Rs. 1,200 for those with half-year income of above Rs. 25,000. By increasing parking charges at the New Bus Stand, the municipality could fetch a revenue of Rs. 50 lakh against the existing Rs. 25 lakh every year through auction, the proposal suggested.
It has planned to earmark parking spaces at congested locations and charge for parking of cycles/motorcycles. “We are planning to bring in user charges for garbage collection. This is necessary for scientific method of garbage removal,” he said.
