The city Corporation’s delay in collection of revenue has an adverse impact on the development and welfare projects of the civic body, according to the Comptroller and Auditor General (CAG) of India report on the Local Self Government Institutions (LSGIs) for the year ending March 2012.

The Corporation did not have a definite system to identify and list all buildings liable to property tax assessment, the CAG report, tabled in the Assembly on Thursday, said. For the report, the CAG had looked into the property, profession, entertainment, and advertisement taxes collected by the civic body. It found that even after seven years the civic body had not taken any mandatory reforms for raising the collection efficiency of property tax to 85 per cent of the projected demand as part of the JNNURM. During 2010-11 and 2011-12, the actual collection was far less than the budget estimates, the report said

The failure to assess buildings identified by it resulted in the loss of revenue to the tune of Rs.4.13 crore to the city Corporation. Unaided educational institutions were not assessed. Of the 27 institutions in the Corporation limits, the civic body was levying tax only on four institutions.

Lack of comprehensive database relating to profession tax affected tax collection, the report said. An amount of Rs.8.81 crore remained to be collected from those people who were yet to be brought under the tax net and also those from whom tax was not collected at the appropriate rate.

Entertainment tax

The CAG had noted that non-levy of entertainment tax on films screened and programmes conducted by the film societies also adversely affected revenue collection.

Pointing out that advertisement tax constituted two per cent of the tax revenue of the civic body, the CAG has said the Corporation also lacks a proper system for levying tax on hoardings. It is also not levying tax on advertisements displayed on vehicles.

Later, addressing a press conference in the capital, Principal Accountant General (Social and General Sector Audit) R.N. Ghosh said the city Corporation should adopt innovative methods like Geographic Information System (GIS) mapping to identify and list all properties and tax all ‘eligible’ ones.

Proper control should be exercised in respect of building permits by maintaining the Permit Register in complete form and there should be proper follow up of lapsed permits.

The CAG also recommended for effective coordination between Revenue and Town Planning section.

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