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Civic body offers amnesty to property tax defaulters

Comments Off on Civic body offers amnesty to property tax defaulters   |   June 9, 2014    03:39am   |Contributed by Indian Realty News

KOLHAPUR: The financially strained Kolhapur Municipal Corporation (KMC) has introduced an amnesty scheme to woo property tax defaulters to pay the tax evaded in the last two years.

Defaulters can now avail a concession of around 6% if they pay all their dues before June 30. As per the civic administration, the total pending amount is around Rs 13 crore. The scheme was implemented at a special camp organized by the property tax department on Saturday.

Dilip Koli, head of the KMC’s property tax department said, “The revenue generated through the property tax department is the major source of income for the civic body. However, some citizens are reluctant to pay taxes on time, which affects infrastructure projects which we undertake. The scheme will help defaulters come forward to pay the tax, though it means revenue loss for us.”

The KMC will face a revenue loss of around Rs 78 lakh if all defaulters pay the tax. The civic body, however, hopes that the scheme will add a significant amount to its coffers within a month.

At present, there are around 1.34 lakh properties across the city, of which around 30,000 owners do not pay taxes every year. The tax is collected from all property owners of residential and commercial plots as well as other types of properties held either privately or by the government (state or central), within KMC limits.

“We submitted a proposal to impose heavy fines on defaulters. The plan involved imposition of 2% fines on tax defaulters on a monthly basis. But the proposal was rejected by the corporators in the general body meeting held last month. We will again table the same proposal as per the state government guidelines as the proposal was drafted after it issued a notification in 2010 for change in tax rules,” Koli said.

The civic administration is also in process of including new properties under the ambit of the tax. It has received applications from around 12 new properties. The civic officials claim that there are around 10,000 new properties across the city, which are not under the ambit of the tax. Bringing these under the tax regime, will generate better revenue.

Source: TNN

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