Corporation revenue likely to take a big hit

The Chennai Corporation has estimated that in two years, its revenue through property tax collection will fall by 75%, compared to last year.

The property tax collected in 2018-19 fiscal was more than ₹1,000 crore. For the next two years, if the old rates are back, the Corporation is likely to net only around ₹250 crore per year, say sources in the civic body. Apart from the old rates, the revenue will reduce further, as the property tax paid by residents has to be adjusted, officials point out. Of the 12 lakh odd assessees, over 4.5 lakh are yet to pay the revised tax this half-year. These assessees are expected to start paying now.

But the tax collection from such residents has been affected due to the lack of clarity on the new order of the government.

Posts vacant

The Corporation is also yet to fill in vacancies for the posts of tax assessors, to facilitate better response to government policy decisions. Over 100 tax assessors’ posts remain vacant in the Corporation, affecting the civic body’s work on revising tax rates.

“One tax assessor is needed for 3,000 assessees. But many assessors have more than 20,000 assessees. This is affecting work,” said an official.

Why you should pay for quality journalism - Click to know more

Recommended for you
This article is closed for comments.
Please Email the Editor

Printable version | Feb 27, 2020 1:59:56 PM |

Next Story