Early realisation marks the half-yearly status in GVMC
Though it fell short of the target by about 10 per cent, early realisation of property tax, particularly from big payers, marks the half-yearly status in GVMC.
Of the target of Rs.200 crore for 2016-17 (and Rs.100 crore for half year) Rs. 90.64 crore has been realised.
Surprisingly, of the Rs.40 crore target from commercial and business establishments for half year, baring about Rs.50 lakh, the rest of the amount has been realised. It is in sharp contrast to their paying the tax towards the end of the financial year, sometimes availing themselves of the interest waiver that used to be offered by the government. That has changed now with introduction of a penal provision.
What finally worked in favour of GVMC, particularly with regard to schools, hotels, hospitals and other business establishments, is the 2 per cent interest levied after June 30. “This has resulted in almost the entire tax from business and commercial assessments being realised,” said an official.
With the introduction of 5 per cent incentive for payment of entire property tax for the year, about Rs.20 crore is realised in April itself. Of the Rs.60 crore property tax from residential assessments for half year about 50 crore has been remitted.
Incentive
Because of the early payment incentive followed by penal provision, tax realisation improved. To further increase it, in the last 10 days of the half year a special drive has been carried out resulting in payment of Rs.13 crore.
In May and June an intensive campaign was carried out on utilising the window for payment before June as after that a 2 per cent penal interest is levied.
“Its the result of the persistent exercise during the past two years that led to more compliance,” said the official.
With the Revenue collection staff of GVMC right from the tax collectors to Deputy Commissioner in the campaign and using other media like autos and FM radio, compliance has increased.
Of the Rs. 100-crore target for half year, Rs. 90.64 crore has been realised