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According to official data, property tax defaulters in Ernakulam district collectively owe Rs 392 crore to local bodies. Notably, building owners within the Kochi Corporation limits top the list with outstanding property tax dues amounting to Rs 252 crore. Among the municipalities in the district, Kalamassery and Thrikkakara have the highest amounts of pending property tax.
In the panchayat limits, majority of the building owners have dutifully paid their property taxes, resulting in negligible pending arrears when compared to the municipalities. The total sum of tax arrears stands at Rs 392 crore, encompassing dues from building proprietors against whom revenue recovery proceedings have been initiated. This figure also includes property tax obligations of veterans before exemptions were introduced and outstanding deductions in vacant property taxes.
The available data highlights that the corporation has managed to recover only 20% of the arrears in the past fiscal year, with a slightly higher 18% recovery in 2021-22. These statistics have contributed to the accumulation of outstanding dues.
Corporation officials explain that the significant arrears are primarily attributed to the non-deduction of dues from building owners currently undergoing revenue recovery proceedings. However, they are optimistic that once these dues are collected, along with exemptions granted to veterans and vacant buildings, the cumulative amount will substantially decrease. They also note that online tax collection was implemented by the corporation just a year ago, and not all collected dues have been included in the current dataset. Efforts are underway to ensure that exemptions are accurately reflected in the arrears data.
The civic body faces the burden of such substantial arrears due to unclaimed tax exemptions. They continuously receive requests for vacancy remission (VR), which involves reducing property tax amounts for vacant buildings, as requested by owners. Their tax appeal standing committee processes numerous VR requests daily. Many buildings witness the sale of only the ground floor, leaving upper floors vacant. In these cases, builders or owners often apply for VR. This trend impacts the corporation's property tax revenue.
This complex web of factors underscores the challenges municipalities and corporations face in ensuring prompt and complete property tax collection, a crucial component of their revenue streams. As they strive to streamline processes, encourage compliance, and manage exemptions, a delicate balance must be struck between revenue generation and providing necessary relief to property owners.
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