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MCC finds discrepancies in property tax collection

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The Hindu      Karnataka (Mysuru)      07.09.2016   

MCC finds discrepancies in property tax collection

  • collection drive:The Mysuru City Corporation has undertaken a property tax collection drive and around Rs. 3.5 crore has been collected so far.— file PHOTO: M.A. SRIRAM
    collection drive:The Mysuru City Corporation has undertaken a property tax collection drive and around Rs. 3.5 crore has been collected so far.— file PHOTO: M.A. SRIRAM

Hotel in city recently made to cough up Rs. 20 lakh dues for four financial years; Mayor Bhyrappa pans officials for laxity on their part

The Mysuru City Corporation (MCC) has found glaring discrepancies in the assessment of property tax under the Self-Assessment Scheme (SAS).

Inaccurate assessment of property tax based on building area by commercial and domestic properties may have caused a revenue loss to the tune of Rs. 50 crore since the launch of SAS, said Mayor B.L. Bhyrappa on Tuesday.

MCC has undertaken a tax collection drive and around Rs. 3.5 crore has been collected since the launch. Still, property owners owe the civic body around Rs. 90 crore, Mr. Bhyrappa said.

The civic body has also collected water dues to the tune of Rs. 5 crore, he added.

The discrepancies in property tax collection were uncovered recently while collecting tax from a reputed hotel in the city. A tax difference amount of Rs. 20.21 lakh was collected from the hotel, the mayor said, as its area had been wrongly calculated under SAS.

“Though the property measured 51,272 sq.ft, it had assessed the size at 41,000 sq.ft. The hotel had been paying tax accordingly since 2013-14. We noticed this and collected the difference tax for the actual size from 2013-14 to 2016-17,” he said.

Mr. Bhyrappa expressed suspicion that many property owners might be paying less than what they should with “wrong calculations” under SAS.

Random checks

The Mayor said he has asked revenue officials to reassess tax collections and randomly check the properties, mostly commercial ones, to find more discrepancies, if any.

Blaming officials for causing revenue loss to the MCC, Mr. Bhyrappa said he has brought this to the notice of the MCC Commissioner for taking action against the officials responsible.

However, the Mayor could not give convincing replies on how property owners paying lower tax under SAS had flown under the radar all these years. He just said, “I have appointed zonal officers for property tax collection and to check discrepancies.”

Mayor says many property owners might be paying less than what they should under SAS

 

10 waste-to-energy plants to go on stream next year

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The Hindu      Andhra Pradesh (Visakhapatnam)    06.09.2016

10 waste-to-energy plants to go on stream next year

Waste-to-energy plants in 10 urban local bodies in the State are likely to function from next year.

While detailed project reports (DPRs) are ready for 63 ULBs, 10 of them will start producing power by combustion of municipal solid waste, according to Managing Director of Swachha Andhra Corporation D. Muralidhar Reddy.

Though the waste-to-energy plants are planning to start operations from the end of 2017 or January, 2018, we are insisting that they go on stream from October 2, 2017,” Mr. Muralidhar Reddy told The Hindu over phone when contacted.

The 10 ULBs are: Visakhapatnam, Tirupati, Kurnool, Anantapur, Kadapa, Nellore, Guntur, Machilipatnam, Tadepalligudem and Vizianagaram. For the Visakhapatnam plant the process of lease of land is under process, he said.

Together the 10 plants will produce 63 MWe of power.

Mr. Muralidhar Reddy said it was for the agencies executing the projects to stick to the guidelines in Municipal Solid Waste Management Rules and separate the organic waste for making compost or biomethanation, recyclables and un-recyclables. To promote making of compost from urban solid waste, the Central government has introduced a market development assistance of Rs.1,500 per tonne of city compost. It will be paid to the fertilizer company for co-marketing city compost along with chemical fertilizers. After the policy was announced in January, tripartite agreements were signed between 50 ULBs, compost units and fertilizer companies. According to officials in the Swachh Bharat Mission, New Delhi, at present there are 45 functional/sub-optimal plants making 1.5 lakh tonnes of compost. As a result of the new policy, it is expected to reach 10 lakh tonnes by March 2017.

With another 283 plants under construction, upgrade or revival are expected to add another 13 lakh tonnes taking the total compost production to 23 lakh tonnes.

However, Mr. Muralidhar Reddy said no such tripartite agreement was signed for compost-making in the 63 ULBs in the State. For another 47 ULBs expression of interest has been called for and the request for proposal will be issued in a few days. “If we get such proposal in them we will take it up,” he said.

 

Reluctance to collect professional tax draining Corporation coffers

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The Hindu        Kerala (Kochi)     06.09.2016

Reluctance to collect professional tax draining Corporation coffers

Civic body has not responded to queries raised by auditors

The Kochi Corporation’s approach of going soft on professionals in the city has led to a huge revenue loss, an audit report has found.

The annual audit, conducted by the Local Fund Audit wing of the State government, has revealed that the civic body was reluctant to collect professional tax from the various professionals working in the city.

There are around 2,000 lawyers attending to various city courts as well as the High Court of Kerala. Of this, 120 work as government pleaders and 100 others as public prosecutors. However, professional tax was collected from only a few lawyers. The civic body officials did not respond to the queries raised by the auditors in this regard.

A large number of doctors are employed in nursing homes, health care centres, private hospitals, government hospitals and super specialty hospitals in the city. On inspection of the records, according to the auditors, professional tax was collected from only a few doctors. The civic body sustained heavy loss on account of the failure of the authorities to collect the tax, said the report.

The State auditors also pointed out that the civic body was in the dark about the officials engaged in the work of the Kochi metro rail. The civic body has not paid attention to collect professional tax for the 2014-15 fiscal though the metro works began in the city in 2013. There were also lapses in collecting the tax from those employed in Kendriya Vidyalayas and unaided CBSE schools in the city.

The audit report has pulled up the officials of the corporation for their failure in assessing and collecting the professional tax. It also found lapses in maintaining the documents related to the collection of professional tax.


GAPING HOLES

Annual audit finds that civic body has collected tax only from a few lawyers and doctors in the city

Auditors point out the Corporation is in the dark about officials engaged in metro rail work

 


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