Chennai Corporation evolves action plan for improving own source of revenue

Database of Registration Department and the civic body to be integrated

June 10, 2022 10:10 pm | Updated June 11, 2022 04:05 am IST - CHENNAI

The Greater Chennai Corporation hopes to tap the revenue potential of the on street parking.

The Greater Chennai Corporation hopes to tap the revenue potential of the on street parking. | Photo Credit: R. RAGU

The Greater Chennai Corporation has formulated an action plan to improve its own source of revenue. Integration of databases of other line agencies and use of GIS for reassessment of property form a crucial part of the action plan.

The action plan is part of the World Bank’s Chennai City Partnership. Corporation Commissioner Gagandeep Singh Bedi has asked he officials to take steps to improve the civic body’s own source of revenue. A team of officials, led by Deputy Commissioner (Revenue and Finance) Vishu Mahajan, has come up with the plan.

Giving an example, an official said whenever a new flat was registered by the Registration Department, it would be automatically taken up for property tax assessment by the Corporation. The database of the Corporation has more than 12 lakh properties.

“The World Bank will give some amount of money for every percentage point increase in the Corporation’s own source of revenue. It is actually a loan but the interest is going to be paid by the State government. So, for the Corporation it is as good as a grant. It talks about reforms needed in the assessment of property tax and in the enumeration. One is GIS reassessment of property tax,” said an official.

“For that, the first step, as per the World Bank’s guidelines, was to evolve an action plan to improve the own source of revenue. That is what we have now completed,” the official added.

Non-tax revenue

“Similarly, for non-tax revenue, recommendations relate to advertisement fees. The potential of on-street parking is huge. Right now, if a car is parked outside the designated parking lot, GCC does not have powers to remove it from there. It comes under the Motor Vehicles Act and the police needs to take care of that. In non-tax revenue, advertisement and parking charges are the major focus of the action plan,” said an official.

“We can have a coordination with the Registrar of Companies for using the database of profession tax,” said an official.

The Corporation Council will take the final decision on the action plan and the State government will amend the relevant laws.

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