With the Madras High Court pointing to the need for the periodic revision of property tax rates, Chennai Corporation officials are keeping their fingers crossed.
The city has just crossed the 12 lakh mark in terms of the number of property tax assessees but only 3.87 lakh receipts of tax payment have been generated in the city for this fiscal, during the period between April 1 and August 20.
As per the existing provisions of the CCMC Act, all the assessees have to pay property tax before April 15 for the first half of the year.
“The number of property tax assessees has crossed 12 lakh. But the tax collection is only ₹255 crore so far for this half-yearly period of April-September,” said an official.
The collection was ₹248 crore during the April 1-August 20 period last year.
More than 1.9 lakh receipts of property tax payment for this half year have been generated by tax collectors, who visit shops and houses with hand-held devices. This accounts for 75% of the property tax collection in the period between April 1 and August 20, 2017, compared to 66% last year. The marginal increase in the property tax collection, rising discontent among residents and the unusual dip in collection through online mode are worrying civic officials.
However, the civic body is yet to announce any initiative to improve tax collection or revise rates.
After recording an increase for the past few years, collection through the online mode has dipped this year. Officials are studying the reasons for the decrease.
According to data compiled by the Corporation, only 14% of the tax collected between April 1 and August 20 was through the online mode. At least 20% was collected online in the corresponding period last year. The collection through e-seva centres has also reduced from 15 to 11%.
Privacy concerns
Even as no transaction fee is charged by the Corporation during the online payment of property tax, many residents are avoiding that method, citing concerns voiced on social media relating to the security of the mode of payment, sources said.
Sources also said that the civic body’s initiative to promote online payment has been affected by tax collectors, who are concerned about the loss of jobs.
Of the 279 sanctioned posts of tax collectors, only 180 are filled.
Vacant posts are not being filled up.
A group of officials have been campaigning for an increase in the number of tax collectors.
However, a study by the local body has pointed to the gradual reduction in property tax collection across the country owing to other indirect taxes. “When the Central government is collecting huge sums of money from the public through GST, the grants for the Corporation should also increase. Many residents have started demanding the civic body stop the collection of property tax. We are worried about protests by the public. The grants from the Centre and the State government should increase to improve infrastructure development,” said an official.
