With property tax collection in the first half year not so encouraging, Greater Visakhapatnam Municipal Corporation (GVMC) pins hopes on remittances by some big tax payers .
Demand noticesOnly 50 per cent of the Rs.93-crore demand had been realised by September-end. Now GVMC has to issue demand notices for the second half.
Though the majority pay only in February or March, a small 20 per cent pay promptly.
‘‘Since they are big assessees we hope to improve the revenue position once they pay,” said an official. Collection picks up only in March with interest tax on tax arrears generally announced towards end of the financial year.
The GVMC is going through a lean patch after cyclone Hudhud and is unable to clear bills to contractors. The last time it cleared bills was in September/October for about Rs.18 crore.
Every month a minimum of Rs.5 crore is paid to contractors.
The November earnings from bulk water supply, town planning etc. are just enough to pay salaries, pensions and power bills totaling about Rs.17 crore, say sources.
Major revenueMore than 60 per cent of the revenue earnings come from bulk water supply and property tax.
Though the Chief Minister announced release of Rs.7.9 crore reimbursing expenditure incurred towards cyclone restoration work, it is yet to be cleared by the Treasury Department, sources say.
Big outgoes like contractors' bills would have to wait, said an official.
Similarly, bills for the earth moving machines mobilized from various parts of the State are also yet to be cleared by the GVMC.
