Trichy Corporation Tax Collection Success
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TRICHY: Trichy corporation has increased its net tax collection to 85% by targeting top tax defaulters who have not been paying property tax for years. With weeks left for the financial year to lapse, the local body has collected Rs 120 crore as property tax, bettering previous year’s collection by Rs 5 crore. Focusing on government buildings and properties under litigation in collecting dues has also helped the local body to shore up the tax revenue.
As of the end of the last financial year (March 31, 2023), Trichy corporation had collected Rs 115 crore as property tax. This year, tax defaulters delaying payments varying between Rs 1 lakh and Rs 2 lakh per property were primarily focussed, resulting in collection of around Rs 18 crore in the last two months. Resolving litigation regarding properties and convincing owners to pay dues helped in augmenting tax collection. As many as 1,477 new assessments were identified in the last three months to levy property tax. The total number of assessments (taxable properties) has increased from 2,35,679 in March 2023 to 2,37,156 in March 2024. If only 28% of property tax arrears could be collected in December 2023, the civic body has increased it to 43% now. Hotels, theatres and other commercial establishments were among properties persuaded to pay the arrears.
Explaining the intensive tax collection, officials said that Central Finance Commission (CFC) fund amounting to about Rs 80 crore will be granted to the city based on their performance in property tax collection. “We need CFC funds to operate and manage the city’s waste management and drinking water supply. As we have tabled a surplus city budget, the revenue received through property tax is vital to deliver our promises mentioned in the budget,” V Saravanan, commissioner of Trichy corporation, told TOI. As the legal measure is unclear on dealing with gated communities and apartments that have a portion of the flats with unpaid dues and a section of flats with nil dues, the civic body is to elicit the support of residents’ welfare association to make the defaulters pay up.