The Greater Chennai Corporation is exploring ways to augment its own sources of revenue, in addition to property tax.
Taking 2017-2018, before the tax revision effected by the AIADMK regime, as the benchmark, the Corporation’s own sourceof revenue is expected to increase to ₹2,500 crore in three years.
Even as property tax is expected to remain one of the most important sources of revenue, a study conducted by the civic body points to the need to amend the Chennai City Municipal Corporation Act to tap the revenue potential of parking charges and outdoor advertising.
The other alternatives suggested include monetisation of land and municipal bonds.
After reports pertaining to a consistent decrease of own sources of revenue, Corporation Commissioner Gagandeep Singh Bedi commissioned a study to augment own sources, particularly alternatives to property tax and professional tax.
Deputy Commissioner of Revenue and Finance Vishu Mahajan said the study about the alternative sources of tax and non-tax revenue of the Corporation will be completed this month.
“We are proposing an amendment to the CCMC Act so that we can regulate outdoor advertising. Outdoor advertisements are valid forms of advertising which pose a safety risk. Outdoor advertisement is big business in several cities. It has the potential of generating huge revenue. It can also be a nuisance if it proliferates. To regulate that and at the same time earn revenue, the Corporation is proposing an amendment to the CCMC Act. All the processes related to outdoor advertising will be streamlined. Parking and advertising are two big things which have not been leveraged,” he said. The study talks about many other new avenues which the GCC could like to take up eventually, for example, monetisation of land. “Property tax remains the major source of revenue followed by professional tax. We want the efficiency in administration of these two taxes to be up to the mark. Until we do our best in these, we would only be spreading our resources by trying to look into other modes as well. We are starting to do that as well. But as of now,our main focus for the next four months will remain on implementing the revision properly and ensure that it gets rolled out in a smooth manner,” said Mr. Mahajan.
The Corporation land can be used for remunerative PPP projects like modern shopping complexes, industrial park or other revenue-generating assets based on the local requirement.
Private concessionaires can run it for a defined period and share revenue. Once the property tax revision is implemented, the Corporation is expected to collect ₹1,400 crore in 2022-2023. The civic body has collected ₹750 crore as property tax in 2021-2022. The total loan of the civic body has crossed ₹2,500 crore.
