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Taxation

Hike tax, take funds: GH

Wednesday, 16 June 2010 06:11 administrator
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Deccan Chronicle     16.06.2010

Hike tax, take funds: GH

Tags: commissioner, development funds, Dr Sameer Sharma, GHMC

Hyderabad, June 15: The Greater Hyderabad Municipal Corporation (GHMC) has proposed a new scheme under which wards that pay higher taxes would get more development funds.

The GHMC commissioner, Dr Sameer Sharma, on Tuesday offered the “tax in-crement financing” scheme to corporators seeking more funds to develop their wards. But none of them came forward to accept it.

Under this scheme, any corporator who allows taxes to be increased by 20 per cent in his or her respective ward would be given the additional revenues raised from the ward to be used for developmental works. “Now that the issue (of more funds) was raised in the general body meeting, I am disclosing the scheme and offering it to you,” the GHMC chief said.

Dr Sameer Sharma later told this newspaper that he was willing to place the tax increment proposal before the standing committee. “If the corporators want more money, let them urge people in their ward to pay 20 per cent additional taxes and also help officials in collect it,” he said.

“We have no issues in giving them the additional tax revenues for development activity.”

 

Civic body for system to rein in tax evaders

Tuesday, 15 June 2010 11:24 administrator
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Indian Express   15.06.2010

 Civic body for system to rein in tax evaders

 Express News Service Tags : corporation, property tax defaulters, tax evades Posted: Tue Jun 15 2010, 02:05 hrs

New Delhi: he ruling Bharatiya Janata Party (BJP) in the Municipal Corporation of Delhi (MCD) said on Monday that the civic body needs a more streamlined procedure for launching prosecution proceedings against property tax defaulters in the Capital.

The BJP members claimed the Corporation does not have a system to track property tax defaulters and to take action against them.

“We will raise the issue at the Municipal Corporation of Delhi meeting tomorrow. There is a need for better prosecution proceedings to rein in tax defaulters,” Leader of MCD House Subhash Arya said.

The cash-strapped MCD is mulling various ways to increase its tax revenue.

The civic agency had recorded the highest gross property tax collection of Rs 1,157 crore in the 2009-10 fiscal.

The number of taxpayers also reaching the highest-ever figure of 9.73 lakh.

The officials, however, said owners of an estimated 22 lakh properties in the city are not paying tax to the civic agency.

The tax collection for 2009-10 fiscal was nearly Rs 250 crore less than the target of Rs 1,400 crore.

The municipal agency, meanwhile, has also decided to deploy mosquito breeding checkers for a door-to-door survey to detect property tax defaulters and to bring more units under its tax net.

Last Updated on Tuesday, 15 June 2010 11:27
 

Property tax bills this month, calculated old style

Tuesday, 15 June 2010 11:14 administrator
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Indian Express     15.06.2010

Property tax bills this month, calculated old style

sharvaripatwa Tags : property tax bills Posted: Tue Jun 15 2010, 02:47 hrs

 Mumbai: The BMC is likely to start dispatching this year’s property tax bills in June based on the old, rateable value-based assessment system rather than the planned, new one based on capital value. The property tax department had not sent the bills in April, as the mandate had been to usher in the new tax regime this year.

The cash-starved department has forwarded a proposal asking to be allowed to send bills according to the old system, said a senior official.

The proposal has been approved by the Municipal Commissioner, he added, and is now awaiting the final nod from the state urban development department (UDD). The new system is being put in place but will take some time while computation systems are finalised.

“Once the new system is in place, we will bill the property owners for the difference between the old and the new systems. In some cases, people might have to pay more; in others the BMC might have to refund some money,” the official said.

“We need the money to fund other projects. Once the proposal is passed, we will start dispatching the bills according to the old system. The department hopes to collect about Rs 1,000 crore in the next two months,” the official said.

The new system will be based on the actual market value of property. The figure will be based on the stamp duty ready reckoner, which the government brings out every year. Older buildings will get a concession for depreciation. 

The rateable-value-based system followed now had been introduced in 1888 by the BMC Act. Citizens are charged according to the rental values of their property. As a result, most properties in South Mumbai, where rents are low thanks to the Rent Control Act, entail taxes lower than properties in the suburbs.

The new system, which officials hope to implement by October, is expected to swell the BMC kitty by 25 per cent. The collection target for 2010-2011 is Rs 2,800 crore

The official said Mumbai has nearly 3.5 lakh properties, of which the civic body has data for some 1.8 lakh. According to BMC data, the breakup is 74,062 properties in the city, 1,83,597 in the western suburbs and 86,672 in the eastern suburbs, besides 4,265 government properties.

Last Updated on Tuesday, 15 June 2010 11:16
 
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