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The Thiruvananthapuram city corporation has recently made a record-breaking collection of property tax due to an updated database and the promotion of online payment options. The corporation grossed Rs 115 crore in property tax in 2022-23, which exceeded the target they set for themselves, and showed an increase in collection by 167% in the last five years. This increase was primarily due to the aggressive promotion of online payment of tax and an updated database of tax dues.
In addition to property tax, dues from central government buildings also showed a marked increase. It grew from an annual collection of Rs 20.64 lakh in 2018-19 to Rs 1.36 crore in 2022-23. The civic body directed the revenue wing to update the database and served notices to central government buildings when the database was updated. The corporation also initiated revenue recovery procedures against defaulters with tax dues above Rs 1 lakh, filing revenue recovery notices with the district administration against 80 defaulters in the past two months.
The corporation also saw a significant increase in service charge collection from central government buildings, which grew by over 500% in the last five fiscals. The service charge is levied in compliance with the directives of the ministry of finance and the ministry of works, housing, and supply. The ministry of finance and the ministry of housing, works, and supply specified that the central government institutions shall pay service charges to local bodies at a rate of 75%, 50%, or 33% of property tax depending on whether the services of municipality are availed fully, partially, or nil.
The corporation relied on a Supreme Court order issued in 2009 when considering a joint petition filed by the municipal corporations of Rajkot, Ahmedabad, Jamnagar, and Vadodara seeking charges for providing services like water, sewage, lighting, road, and waste management to central government buildings. The court had ruled that central government buildings are liable to pay service charges to municipal corporations for providing services like supply of water, conservancy/sewerage disposal, and general services like approach roads with streetlights, drains, etc.
The row over tax fraud in zonal offices has turned out to be a blessing in disguise for the city corporation, as it led to the corporation's decision to update their database and heavily promote online payment options. This has resulted in a significant increase in tax collection and service charge collection, even from central government buildings. The corporation's proactive measures, such as initiating revenue recovery procedures against defaulters, also contributed to the increased collection of tax dues. The corporation's reliance on legal provisions and a Supreme Court ruling has helped them collect service charges from central government buildings. Overall, these developments have put the city corporation in a better financial position, which can only benefit the city and its residents.
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