The Hindu : Tamil Nadu / Chennai News : Chennai Corporation exceeds tax collection targets

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Monday, Apr 14, 2008
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Tamil Nadu

Tamil Nadu - Chennai

Chennai Corporation exceeds tax collection targets

J. Malarvizhi

Increased awareness is one of the reasons

CHENNAI: The computerisation of property tax collection at the Chennai Corporation seems to have paid rich dividends, with the local body exceeding tax collection targets set for the 2007-08 financial year. This is the first time that the targets have been crossed since 2000.

The Corporation last year found 35,181 commercial and mixed-use buildings to be undervalued or not assessed. Reassessment showed that building owners owed Chennai Corporation Rs. 267 crore. The computerisation of properties and tax arrears revealed that property owners owed the local body about Rs. 700 crore. These arrears are now being collected, leading to the rise in tax collection in the past financial year.

From 2000, property tax collection has ranged between 75 and 92 per cent of the targets established for a specific financial year. The tax collection target has risen from Rs. 175 crore for 2000-01 to Rs. 280 crore for 2007-08. The record collection of over Rs. 291 crore has exceeded the target by four per cent this year. The collection has risen by 25 per cent over the previous year and by 60 per cent since 2000.

Increased awareness among tax-payers and transparency in collection are among the causes for the rise. The options of payment through credit card and via website and of self-assessment of property tax due have been widely used.

Profession tax collection has also crossed the target set for the last financial year by 19 per cent. The total tax of Rs. 75 crore collected for 2007-08 is the highest collected total for profession tax. Tax collection has been above 90 per cent of target since 2000 and has touched 127 per cent of target between 2004 and 2006.

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