A flat rate for levying tax not possible, says official
The Coimbatore Corporation has written to the State Government seeking clarification on the way to tax telephone towers.
The civic body had first announced in the 2010-11 budget that it intended to tax the towers on buildings and vacant lands at a uniform rate of Rs. 15,000 for half-year to widen its revenue base. It derived the idea from the Chennai Corporation.
The civic body also said that the taxation would lead to regulation of the towers.
Consequent upon the proposal, the Corporation's Finance Committee took up the proposal and suggested that the civic body adopt the method used for arriving at property tax to levy tax on mobile towers as the proposed flat rate system was not possible.
As per the Coimbatore City Municipal Corporation Act a flat rate for levying tax was not possible, said an official from the Corporation's revenue wing.
The Corporation calculates property tax taking into account the plinth area of the assessment under consideration, base rate, which varies for residence, industry, mixed, small commercial and office, hospital, wedding halls, cinemas and other establishments, the location and type of building and the age of the property under assessment.
It also takes into account the ward where the property is in, as the property tax varies.
The officer said the Corporation proposed to adopt the same procedure for levying tax for towers but was not sure of what the rate should be.
It was for this that the civic body had written to the government.
There are approximately 2,000 mobile phone towers in the Corporation limits and assuming a half-yearly tax of at least Rs. 5,000 a tower is permitted by the government, it would easily bring in a revenue of Rs. 1 crore every six months.