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Fund-starved panchayats to get additional revenue

K.N. Murali Sankar
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Levy of house tax on educational institutions revived

A view of the sprawling campus of a private engineering college at a village near Amalapuram in East Godavari district.
A view of the sprawling campus of a private engineering college at a village near Amalapuram in East Godavari district.

Village panchayats in East Godavari district are going to get one-time revenue of Rs. 20 crore this year and an additional Rs. 5 crore per annum from the next fiscal, thanks to the revival of levying the house tax on private educational institutions. This will fetch additional revenue to the fund-starved panchayats. The tax will be collected along with arrears.

With most of the private technical educational institutions are located in the rural pockets, the estimates indicated that the house tax to be collected per annum will be Rs. 5 crore. As the tax is being calculated ever since the construction of the buildings, the arrears have come to the tune of Rs. 15 crore.

These statistics have prompted the State government to ask the authorities of all the districts to emulate East Godavari and revive the house tax on private educational institutions, which has been put on hold long ago.

“The demand notices have already been issued to over 100 private and corporate educational institutions in the district. Though three colleges have challenged the notices in court, the verdict is in our favour,” District Panchayat Officer L. Sridhar Reddy has told The Hindu .

The tax has been assessed basing on the extent of the plinth area and the value of the site in which the buildings have been constructed. Since most of the buildings are multi-storeyed and located on sprawling campuses, the village panchayats concerned are going to get good revenue in the form house tax. “The tax will be revised periodically and the panchayats concerned can spend the amount for the development of their village,” says Mr. Reddy.

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