KOLKATA: The Bidhannagar Municipality
is all set to restart the process of collecting property tax. The civic
body had started collecting taxes in March, but the process had to be
stalled a couple of weeks later after some confusion over tax
calculation surfaced.

“We are going to restart collecting property tax
soon. Tax rates will be based on the old, 2005 rates as directed by
minister Firhad Hakim,” said Bidhannagar Municipality chairperson
Krishna Chakraborty.

According to the old tax structure, those
who have an annual valuation of their property between Rs 1 and Rs 999
will have to pay a tax of 3.5% of the annual valuation. The tax rate
will go up to 10.5% for property that has an annual valuation of over Rs
10,000 (See chart). The civic authorities are expecting to collect
around Rs 9 crore in the form of property tax this fiscal.

Officials said that bills of those who have already paid their taxes
will be adjusted and fresh bills will be sent to those who did not pay
their bills in March. According to sources in the civic body,
Bidhannagar Municipality had collected a total of Rs 6.57 crore in the
form of taxes in a couple of weeks in March. “We have almost completed
the process of calculating the tax rate based on pre-2005 rates and will
start dispatching the bills soon,” said a civic official.

Tax collection in Salt Lake
remained suspended for a few years in the past. On February this year,
the civic body sent a notice to the residents that the municipality will
start collecting tax for fiscal 2010-11, 2011-12 and arrears from 2007
to 2010. There was a mad rush to pay taxes after the bills were
dispatched. But many residents started complaining that the tax bills
they received were not matching pre-2005 rates. The civic authorities
then sought intervention of urban development and municipal affairs
minister Firhad Hakim. The tax collection process was stopped after the
minister admitted that there was confusion over the tax bills. There
were some miscalculations in the tax bills that was prepared.

Highlights of tax proposal

Tax bills will be sent for fiscal years of 2010 to 2011 and arrears from 2007 to 2010

Tax structure –

Annual valuation Property tax

Rs 1-999 3.5 %*

Rs 999 – 4999 5.25%

Rs 5000 – 9999 7%

Over Rs 10000 10.5%

(*of annual valuation)

Rs 6.57 crore: Tax collected in March

Rs 9 crore: Target set by the civic body this time