The Hindu 26.03.2013
Interest waiver spurs property tax collection
Interest waiver announced by the government has stimulated payment of property tax collection in GVMC. Remittances pick up only in March with interest waiver becoming almost an annual feature. In GVMC, however, certain measures have led to realisation of more tax early in the year without waiting for March.
“During the past five days the daily collection has been between Rs.1.5 crore and Rs.2 crore and the total collection about Rs.10 crore,” Deputy Commissioner (Revenue) R. Somannarayana told The Hindu .
However, the loss due to interest waiver is estimated at a whopping Rs. 10 crore.
Against Rs. 170 crore demand that can be collected this fiscal, the collection so far has been Rs.127 crore with 2.6 lakh of the 3.7 lakh assessees paying. “Contrary to popular perception that big tax payers are spared and common people are targeted, commercial establishments have so far paid 75 per cent of the Rs. 75-crore demand,” the DCR said.
The GVMC has taken advantage of technology and sent its personnel armed with a tablet PC to identify establishments. Current details of the buildings identified are assessed and fed into it and compared it to the old status of measurements, usage like commercial/residential etc. “It sends the details to the main office online and generates a special notice. There can hardly be any ground once the notice is generated and it is difficult to contest it on vague reasons,” says Mr. Somannarayana.
About 1,000 such assessments have resulted in Rs. 2 crore more than they would have normally paid resulting in 158 per cent more collection, he said.
No online facility
However, online payment that has been promised this year did not materialise. Payment through all banks also did not materialise. In spite of making arrangements like printing books etc., the proposal did not make progress because GVMC wanted the banks to set up servers.
“At first they agreed for depositing the collection weekly once in specified banks but later wanted it to be done every day and asked us to set up the servers and the matter got stuck there,” said official of a pubic sector bank that announced it would accept GVMC tax receipts. Customers who went to pay returned disappointed.
Mr. Somannarayana said that it was for the banks to set up the servers.
During the past five days the daily collection has been between Rs.1.5 crore and Rs.2 crore, says official.
