Trichy corporation is less likely to reap dividends from it as tax collection arrears surpass an average Rs 100 crore annually. Since this accounts for almost half of its annual tax revenue, collecting the outstanding dues is a sure-fire way to improve its financial reserve.
In response to a Right to Information Act (RTI) query raised by city-based activist Aron K Thiraviyaraj, the civic body said it has arrears varying between Rs 116 crore and Rs 180 crore for the financial years from 2017 to 2021.
The local body authorities have blamed the arrears, which are on par with the regular annual property tax demand, on Covid-19 impact. However, it conveniently downplays the fact that tax dues of over Rs 100 crore were remaining even before the pandemic.
For instance, the civic body had tax revenue dues of over Rs 180 crore for the 2018-2019 fiscal, one of the highest in five years.
As for the Covid-19 period, the city corporation is awaiting Rs 164 crore to be collected from residents and commercial establishments for 2020-2021. With arrears mounting, regular defaulters feel encouraged not to pay their dues for years together.
“Collecting crores of outstanding dues from defaulters would be sufficient for the local body to manage the maintenance expenses without revising the existing tax slabs,” Thiraviyaraj said.
Through the recent tax revision, Trichy corporation expects property tax revenue to increase by Rs10 crore – Rs12 crore. “Before June 2022, we have planned to collect a major part of the dues. The recent conduct of local body elections hampered the process, but notices were sent to the defaulters. Non-residents can pay the dues online,” an official said.
