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Taxation

Property tax demand notices to be issued

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The Hindu         12.10.2010

Property tax demand notices to be issued

VISAKHAPATNAM: The Greater Visakhapatnam Municipal Corporation will begin issuing demand notices for payment of property tax soon. The process of generating the notices has begun.

The decision to issue the notices has been taken as there has been no communication from the government after it issued a memo directing the corporation to collect property tax based on average rental value and plinth area.

“The first half year was already over. In the absence of any instructions from the government the corporation would be hard put to explain why the demand notices are not issued paving way for collection of tax,” says an official.The demand notices, however, will be issued in a phased manner.

The notices will be first issued to the 55,000 assessees in whose property tax there has been no increase. Next comes the turn of those who have received the special notices but not filed revision petitions.Notices will be issued to those who have filed revision petitions after disposing them of.

Last Updated on Tuesday, 12 October 2010 06:15
 

Toll tax on ORR from Dec

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The Times of India             12.10.2010

Toll tax on ORR from Dec

HYDERABAD: Come December, motorists travelling on Outer Ring Road (ORR) will have to cough up toll tax. The proposed toll, which will be based on distance travelled and vehicle, will be between Rs 20 and Rs 150 and it will be collected only at exit points or at interchange points.

The Hyderabad Metropolitan Development Authority (HMDA) has prepared toll tax proposals and sent it to the state government for approval.

Though the 158-kilometre ORR is yet to be fully operational, toll tax would be collected on the 62-km stretch. The HMDA has completed 24 kms of ORR Phase I from Gachibowli to Shamshabad and has thrown it open for traffic. It hopes to open the 38-km (ORR Phase II-A) Shamshabad-Pedda Amberpet stretch by December, 2010.

"The HMDA is contemplating to collect toll tax from motorists for the 62 kms from December. The authority has sent proposals for the government approval which is expected very soon," ORR director and chief general manager (Technical) G Jagannadha Rao told TOI on Tuesday.

Before sending the toll proposals, the authority studied toll taxes being collected by various agencies on state highways and national highways and decided to grade vehicles into five categories.

In the first category, cars, jeeps and vans would be placed and it would attract the lowest toll. Similarly in the second category would be light commercial vehicles like DCMs and mini lorries, buses and trucks in the third category, trucks with 3-5 axles in fourth category and all vehicles with over five axles in the fifth category (high-end tax).

As toll would be collected by an automatic intelligent system, the authority floated global tenders. The tender process would be completed by March 2011. Designs and installation might take another year. As it would take more than a year, the authority has decided to collect toll tax till then manually.

The HMDA had a few months ago proposed to collect toll from vehicles using the 11-km-long PVNR Expressway connecting Mehdipatnam and Aramghar. However, the chief minister reportedly rejected the proposal.

For ORR, the state government has taken a decision to collect toll from vehicles that use the eight-lane-access controlled expressway. A part of the toll collected from vehicle owners/drivers would be used to repay the Rs 3,000-crore loan taken from Japan International Cooperation Agency (JICA) for ORR.

Last Updated on Wednesday, 13 October 2010 10:57
 

Target 107 crore, collection 45L

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The Times of India                   11.10.2010

Target 107 crore, collection 45L

NAGPUR: In a classic example of how the Nagpur Municipal Corporation (NMC) fails to meet its revenue targets, the market department has collected only 45.09 lakh from April 1 to June 15 as against a target of 107.76 crore. This comes to only 0.418% of the targeted sum.

These figures clearly indicate that the market department, which plays a key role in collection of revenue for the civic body, is lagging far behind. The market department staff of NMC is responsible for collecting dues from the over six lakh authorised and unauthorised hawkers and shop owners in markets in the city. The figures indicate that something is amiss. Market department sources say that the reason for the low collection is the lack of staff. NMC sources say they also lack agents who can go out into the field and collect fees and taxes from reluctant parties.

The sources say that there 12 types of posts in the market department, ranging from market supervisors to chowkidars, with a sanctioned staff strength of 84. Out of these, 23 posts are vacant while 29 other officials have been deputed to work in other departments. This leaves only 32 people working in the market department.

The agents presently at work are also supposed to be extremely lethargic and corrupt, while the officials turn a blind eye to the affairs. As a result, one of the key revenue sources for the civic body is being neglected, resulting in huge losses for NMC.

Some of the figures available with TOI are shocking. For rent collected from shops, the NMC had set a target of 4.20 crore but collected a meagre 13 lakh. From weekly and daily markets, the civic body had set a target of 6 lakh but ended up collecting 66,560 instead. The target for fees collected from hawkers was set at Rs 1 crore, but all that the agents could manage to collect was 5.62 lakh. That's not all. The officials have not even started to collect the rickshaw tax, the target for which was set as 20,000.

The highest target of 101 crore was set for rent from shopping complexes developed by NMC, but the officials have barely collected 8.35 lakh in this period. The civic body also lost out on a sizeable amount of revenue by not meeting the target of 1.50 crore from miscellaneous costs, and ended up earning only 17.45 lakh.

A source from the market committee informed that NMC had replaced the old scheme of collecting 2 per day from each hawker with a new scheme of collecting 1,000 per annum from the hawkers. This new scheme was adopted five months back. "If implemented in the right spirit, NMC can save up to 1 lakh under this scheme but officials are very lazy and do not work towards collection of revenue under various heads," said the market committee member. Repeated efforts to reach NMC officials failed.
 


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