The civic body, KMC, is prepared with replies to the queries advises by Governor M K Narayanan when he was asked to sign the property tax waiver bill. The report, that has been sent to the state municipal affairs department by the Kolkata Municipal Corporation (KMC) authorities, are forwarded to the governor in the week.

A whopping Rs 2,600 crore is pending with around 3.6 lakh property taxpayers. Before going for the new Unit Area Assessment ( UAA) methodology, the civic body has to clear this huge backlog. The waiver theme can facilitate the civic body mop up this pending revenue, the civic prime brass has argued.

Besides, the KMC immediately desires funds to sustain development of property in Kolkata and continue with essential civic services. As per KMC official, the civic high brass encompasses a target of collecting rupees three hundred crore from the waiver theme. The KMC authorities are positive that below such circumstances, they'll get the governor’s approval.

After the tax waiver bill was passed within the state legislature, it absolutely was sent to the governor for his consent. However, Narayanan sent it back, requesting sure clarifications. Firstly, he puzzled how such tax deductions, given to usual defaillance, may well be justified. He was additionally curious to understand regarding the civic body’s road map for revenue augmentation aside from providing waiver to tax defaulters.

Mr. Alapan Bandyopadhyay, Municipal affairs secretary, had sent these queries to Mayor Arnab Roy, asking him to reply to the queries.

Sources within the KMC assessment department admitted that revenue assortment had dropped sharply once the announcement of the waiver scheme a few months back, “A number of taxpayers stopped remunerate their tax once the civic authorities expressed the willingness to reintroduce the waiver for the third time. They've already fallen behind our target revenue assortment. If this trend continues, it'll be an uphill task to achieve the target by the yearend.

The state cupboard has passed the property tax waiver which will return into result between February 1st and April 30th. Mr. Partha Chatterjee, Parliamentary affairs minister uttered, “The KMC officials insisted the defaillance to pay up at intervals this stipulated time to avail of the waiver.”

This is the third property tax waiver offered by Kolkata Municipal Corporation — all thrice it's been a Trinamool board. A couple of week ago, the urban development department had approved the same scheme for Salt Lake. As per Mr. Chatterjee, “The waiver can enhance the revenue for Kolkata Municipal Corporation (KMC) and at identical time, take lots of burden off taxpayers.”

The civic body has set a target of collecting rupees five hundred crore from the waiver scheme. Governor M K Narayanan had kept the bill on hold for weeks by asking some pertinent queries before clearing it.

Now that the waiver proposal has been cleared by the Cabinet, the state municipal affairs secretary can notify the scheme. It'll be followed by the municipal commissioner’s notice to announce the scheme.

“The due amount is badly requisite to value development of residential property in Kolkata, as well as riverfront beautification and to foot the pending bills of contractors who kept essential services running over the past couple of months even throughout the funds crunch,” said a KMC official.

The sources of government said, had to amend the first scheme once the queries raised by the governor.
Earlier, it absolutely was determined that the civic body would exempt 100% interest on the principal quantity for those defaulting less than rupees one lakh. Now, the interest waiver for this category has been fastened at ninety five percent. For those defaulting between Rs 1-5 lakh, the waiver are going to be seventy five percent. Those defaulting over rupees five lakh can get a waiver of fifty percent. The waiver of penalty has been fastened at ninety nine percent.

Struck by a severe money crunch, the KMC had planned to supply a waiver in July 2011 on property tax for defaulters so as to mop up revenue to fund major civic projects. As said Mr. Chatterjee, those that have defaulted are going to be entitled to the waiver. However, the governor had questioned the justification of floating the scheme for the third time in seven years, particularly when major defaulters had refused to avail of the scheme twice.

The waiver could also be a significant commit to bail out the money strapped corporation and also the Salt Lake municipality. Nearly 30% of Salt Lake residents had not paid property tax between 1995 and 2005. Others paid less than the particular tax worth. The tax couldn't be collected owing to a dispute between Salt Lake Welfare Association and also the Bidhan nagar Municipality.

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