The Hindu        22.12.2011

Poor property tax collection puts GVMC in a spot

Staff Reporter

Poor property tax collection for the current year and
piled up arrears have landed Greater Visakhapatnam Municipal Corporation
in a spot.

Apart from meeting its regular
commitments, the corporation is racing against time to complete at least
some of the projects it took up under the Centrally-sponsored
Jawaharlal Nehru National Urban Renewal Mission (JNNURM) for which it
has to contribute 30 per cent of the cost.

The
arrears for years together from various commercial establishments,
government departments, and involved in court cases etc runs into about
Rs.130 crore.

To realise a part of it, the tax
collectors have been asked to issue ‘distraint notices’ to top 25
defaulters in each of the six zones. Their not doing it has led to the
Municipal Commissioner ordering stopping of their salaries for November.

Sources
in the corporation say at least Rs.50 crore of the arrears is
realisable. “Why should we take the blame from contractors for delay in
payment of bills while tax due to us is with assesses?” the Commissioner
was said to have remarked at a recent meeting.

Demand notices

The
collection for the current year is also disappointing. The corporation
has also issued demand notices for the second half-year (in two
quarters). Against a total current demand of Rs.142 crore, so far only
Rs.45 crore has been realised. For half-year alone, the demand has been
put at more than Rs.70 crore. Now almost nine months into the financial
year, even that has not been realised. The Municipal Corporation general
body’s unanimous resolution urging the government to limit the hike to
75 per cent above that of the tax prevailing in March 31, 2010, still
awaits a decision.

Arrears from commercial establishments, government department run into about Rs. 130 cr

Tax collectors asked to issue ‘distraint notices’ to 25 top defaulters in each zone