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Tax defaulters face dustbin diplomacy

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The Deccan Chronicle  09.12.2010

Tax defaulters face dustbin diplomacy

Dec. 8: Beware! If you are a trader in Madurai and not paying civic taxes properly, you will be shocked to see a stinking dustbin in front of your shop the next day. This arm-twisting tactics has, in fact, paid rich dividends to the Madurai corporation with traders coming forward to pay taxes instantly.

This was exactly the strategy resorted to by the urban local body to get one of the largest jewellery shops pay up property tax to the tune of Rs 13 lakh on Tuesday. “In the present case, we could not help but collect the due from the defaulter using dustbin diplomacy,” corporation commissioner S.Sebastine told mediapersons in a lighter vein during the press conference on Wednesday.

Disclosing that total dues including that of industrial tax, drinking water tax, underground drainage (UGD) maintenance tax accounted for Rs 80 crore, Mr Sebastine warned the defaulters including government sectors that stringent action such as disconnecting drinking water and UGD connections would be taken. A list of major defaulters has been taken and the drive has been initiated.

The topper among the defaulters, he said, is the Public Works Department (PWD) whose tax due runs up to Rs 1.98 crore, the commissioner said. Highways department and TNEB are among others.

“We have issued demand notices several times and have even gone to the extent of initiating distraint proceedings against the habitual defaulters. The public sector has the provision to make allocations towards payment of civic taxes in its budget and then get the amount sanctioned from the government,” the commissioner said.

Last Updated on Thursday, 09 December 2010 05:58