The Hindu     Kerala (Kochi)         02.09.2016  

Audit report pegs tax loss to corpn. at Rs.108 crore

The city corporation, which is struggling to find resources for its day-to-day activities, is lethargic in collecting taxes, says the latest Local Fund Audit report.

The tax arrears of the local body during the 2014-15 fiscal come to a whopping Rs.108.32 crore and it collected only 36.29 per cent of the property tax from the residents of the city. Of the Rs.43.69 crore to be collected, it could collect only Rs.15.85 crore. The local body has also been going soft on collecting professional tax from traders, professionals and institutions in the city.

The municipal law empowers the local body not to renew the annual licences of agencies which have not cleared the tax arrears. Yet, the burgeoning tax arrears are a matter of serious concern, the auditors point out.

The failure of the local body in collecting tax for the advertisements displayed in the city resulted in a loss of Rs.3.34 crore. All publicity materials that are displayed in the city without remitting the tax should be removed, they say. Several institutions are found operating in the city without valid licences. A large number of tutorial institutions, parallel colleges and paramedical institutions are found operating in the city without registering themselves with the local body. The civic authorities should pay attention to collecting taxes and other statutory fee from agencies concerned, the report says.

Many flaws

The local body has also failed to fully discharge is duties regarding the maintenance of office records, services offered at its front office, publication of citizens charter, setting up of ward centres, distribution of welfare pension and implementation of rural employment guarantee scheme, the report adds.