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Taxation

Property tax to go up in State

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The Hindu                            23.02.2013

Property tax to go up in State

Staff Reporter 

It is being revised after 17 years: K.C. Joseph.

Citizens would soon have to pay local bodies a higher levy on the land and buildings they own, Minister for Rural Development K.C. Joseph said here on Friday.

Briefing newspersons on policy matters related to local development after a meeting of the State Development Council here, Mr. Joseph said revision in property tax was being proposed after 17 years.

The State would fix the revised rate after consulting the Law Department and it would be enhanced by at least one per cent every year.

Such periodic revision would help local bodies augment their “own fund” collection. The government would allow the public “some relaxation” in paying their property tax dues, he said..

He said the government had “in-principle” agreed to a suggestion to permit local bodies to pay up to 50 per cent of the fair price value (FPV) for land they wished to acquire to set up modern abattoirs and crematoriums. As of now, they could only pay up to 30 per cent of the FPV for land acquisition.

The government would accord up to 90 per cent subsidy to set up compost and biogas plants in households and community levels.

He said “local-level opposition” had seriously undermined the efforts of local self-government institutions to establish modern abattoirs and crematoriums.

Local bodies had submitted scores of proposals to set up such facilities, but there have been no takers to implement the projects owing to neighbourhood-level resistance. Hence, the government would set up efficient cold chain backed abattoirs at a centralised level in all districts.

The Minister said State-approved contractors appeared reluctant to take up Centrally-assisted road development projects owing to delay on the part of Union government engineers in carrying out quality checks.

The Union government also insisted that the contractors give a 5-year guarantee for the roads they repaired as a pre-condition for payment of work bills.

Hence, the State government would release Central funds for such projects to tide over the impasse. He said the decision did not entail dilution of Central norms formulated to check shoddy work by Government contractors.

The government would meet the demand of several panchayats to hand over to them local roads, currently maintained by the Public Works Department.

Education Minister P.K. Abdu Rabb would call a meeting of local bodies to ensure better utilisation of Sarva Siksha Abhiyan funds earmarked for improving elementary education in the country, he said. Collectors, MPs, and MLAs will hold a meeting to improve the utilisation of funds set apart for development of Scheduled Castes and Scheduled Tribes.

Plan funds will be better utilised in the next financial year and the development would be “evident at the ground level,” he said adding that projects for the next year would be approved in March and the government would use specialised computer software to monitor fund utilisation from now on.

The software would help the Government give incentives to panchayats based on their performance. The Government would be able to accurately gauge the performance of local bodies by verifying the time taken to execute schemes after the original projects were approved, among other parameters.

Last Updated on Saturday, 23 February 2013 07:20
 

No escaping property tax now

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The Times of India                         22.02.2013

No escaping property tax now

RAJKOT: It won't be easy to evade property tax now. Rajkot will be the first city where every property - commercial, residential and institutional - will have a unique property identification number.

Using the Geographic Information System (GIS), a map-based information arrangement, Rajkot Municipal Corporation (RMC) has completed a comprehensive survey and charted all buildings in the city.

"All information, including photographs of building units are now available. Details regarding property which have not been assessed for property tax and buildings that have undergone a change of designated use, are also readily available," said municipal commissioner Ajay Bhadoo.

"The GIS-based survey has been completed and we are now doing a field survey of all properties in the city, which will be completed in six months. Once the final validation survey is complete, every property in the city will be given a unique number. The Property Identification Number (PID) will have the corresponding house number, detailed address and owner's name, details like electricity and water connection numbers, as well as data like built-up and carpet area, number of floors, usage and year of construction. A photograph would be linked with the all of this data, along with tax payment and town planning-related history of the property.

Bhadoo said this is perhaps the most comprehensive GIS database created by any city in the country. "It not only covers properties, but also has data related to trees, temporary structures, and municipal as well as other service utilities," Bhadoo said. Interestingly, the GIS-based survey helped the civic body mop up property tax revenue as well. RMC officials said that by using this database, property tax collection increased from Rs 120 crore per annum to Rs 160 crore in last two years.

"There will be huge gains in property tax collection once we complete the survey," said an RMC official. The consultancy work for this GIS survey was given to Science and Technology Park, an autonomous institute of the University of Pune. It is promoted by the department of science and technology (DST) of the Government of India.

Data will help disaster management too

The GIS-based survey has not only mapped buildings, but also several other crucial details that could prove handy in the event of a disaster. The survey has collated data of the length and width of roads, footpaths, drainage network, telephone poles, streetlights, manholes, valve chambers and water supply network among other utilities. "This database will help immensely in the event of a natural disaster, as details regarding schools, fire brigade stations, open grounds and government organizations in the city will be instantly available," said an RMC official.
Last Updated on Friday, 22 February 2013 10:07
 

PCMC offers tax rebate to ex-servicemen freedom fighters & women

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The Times of India                            22.02.2013

PCMC offers tax rebate to ex-servicemen freedom fighters & women

PUNE: Ex-servicemen, freedom fighters and women property holders in Pimpri Chinchwad will get 50% concession in general property tax from the coming financial year. Those who own multiple properties, will get the benefit on a single property.

The PCMC property tax department had proposed a minimum hike of 4% and a maximum of 13% in various taxes to be collected for 2013-14.

Municipal commissioner Shrikar Pardeshi said the civic body generates 70% of its income from octroi and the remaining comes from property and other taxes. Octroi will be abolished from April 1, 2013, and will be replaced by Local Body Tax (LBT).

"If there were octroi for the next financial year, our target was to collect Rs 1,500 crore. We expect the civic body to face a deficit of Rs 200 to 300 crore in revenue if LBT is implemented. So there is a need to raise the rates of property and other taxes to increase the income," the municipal commissioner said.

Shahji Pawar, assistant commissioner and chief of property tax department said the property tax department was expecting an additional revenue of Rs 45 crore if its tax hike proposal was approved. Now, the PCMC's tax collection will increase by only Rs 25 crore, he said.
Last Updated on Friday, 22 February 2013 09:52
 


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