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Property tax collection: 22 urban local bodies chiefs get notice

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The New Indian Express        23.04.2017

Property tax collection: 22 urban local bodies chiefs get notice

HYDERABAD:  Taking a serious view of poor collection of property tax by several urban local bodies in the state during 2016-17, the director of municipal administration has slapped show-cause notices on 22 municipal commissioners for poor performance.

As property tax is the only source of major revenue for ULBs that helps them take up developmental works and provide better civic amenities to citizens. Director of municipal administration TK Sreedevi issued the notices, seeking explanation from the 22 commissioners for the poor collection of property tax which ranged between 40 and 80 per cent.

With the 2016-17 financial year having ended three weeks ago, the collection of property tax in all towns and cities was reviewed by the DMA and it was found that the 22 ULBs collected less than 85 percent of the tax, which was termed as not satisfactory.

In spite of the mandatory job work and specific instructions, the commissioners failed to improve the collections, thereby denting the finances of the ULBs. Bhupalpally stood at the bottom in property tax collection with 40.13 per cent.

Wanarparthy collected 57.55 percent and Palvoncha 62 per cent of the tax.

The collection of property tax, along with non-taxes, is the core function of a municipality. Prompt collection of property tax enables ULBS to meet their day-to-day administrative requirements.


In this connection, levy and collection of property tax was reviewed at the government and Head of Department (HoD) levels. Circulars were issued for 100 percent collection of property tax. Regular review through video and teleconferences was also conducted to improve the collections

. However, the 22 ULBs failed to achieve the targets set by the Director of Municipal Administration (DMA), and municipal commissioners were called upon to explain within seven days why disciplinary action should not be initiated against them for the said lapses.