COIMBATORE: The city corporation is struggling to meet its property tax collection target. While the civic body has set a target of Rs592 crore, including arrears to the tune of Rs123 crore, for the current financial year, it has collected just around Rs281 crore so far.
Last fiscal, the corporation had managed to collect 92% of the property tax collection target. Having achieved just 47 of the target so far and with just two months remaining in the financial year, even achieving the same feat is a daunting task this time.
According to a senior corporation official, cities such as Salem, Tirupur and Karur have achieved a revenue growth rate of 52%, 24% and 33%, respectively, while Coimbatore lags behind at just 14%, which is lesser than the national average of 15%.
One of the key reasons for the poor tax collection is the lethargy on the part of residents. Not just commercial establishments, even residences fail to pay property tax on time, despite multiple warnings. “Many residents delay their tax payments until the year-end, incurring a 1% interest penalty. People are unaware that paying within the first 30 days qualifies them for a 5% incentive. The last-minute rush often causes technical issues like portal errors or server slowdowns due to high input,” another official said.
While property tax is only a small portion of the source of funds for the civic body, the pending dues still make a dent in the fiscal health of the corporation. “The tax revenue will help complete some of the pending projects announced by the corporation. It will also come in handy in paying contractors for completed projects,” the official said.
With just 50 days remaining, officials are intensifying efforts by way of announcements through public address system, media advertisements and erecting banners and flex boards to boost collections. Automated SMS notifications are also being sent to the taxpayers. In addition, awareness programmes and special tax collection camps are being organized. “Tax collection offices are now open even on Sundays,” the official said.
Simultaneously, the civic body has also initiated measures to identify unauthorized constructions and those built in violation of the approved building plans. These buildings will be levied a penalty and additional tax. The corporation is conducting drone surveys to assess such buildings.
“Bill collectors are inspecting 20-30 buildings daily to verify tax compliance and detect unauthorized constructions. Immediate action is taken in case of violations, and we expect a significant increase in collections in the coming weeks,” said another source.
