BMC annual tax collection crosses Rs 100 crore mark

Bhubaneswar, May 12: For the first time in its history, the
Bhubaneswar Municipal Corporation (BMC) has collected Rs 100.13 crore as revenue,
including Rs 35.07 crore Holding Tax, which is also the highest so far.
Out of the total collection of Rs 100.13 crore, the various
tax components include, Holding Tax Rs 35.07 crore, Users Charges Rs 9.79
crore, Advertising Tax Rs 15.85 crore, Trade Licence Rs 3.91 crore, Licence Fee
on right of way (ROW) Rs 0.90 crore, Parking Fees Rs 2.41 crore, BMC Market
rent Rs 1.3 crore and Other tax revenue Rs1.64 crore. While the total tax
revenue is Rs. 70.92 crore, non-tax revenue is Rs. 29.20 crore.
Interestingly, the civic body is planning to make the total revenue
collection in the 2017-18 fiscal Rs 130 crore. By collecting more and more
revenue the biggest urban local body of the State and the First Smart City of
the country is aiming to invest more in people-centric projects in future if
the collection continues to have an upward trend.
Municipal Commissioner Dr Krishan Kumar said, “The
corporation will invest more on people and creating more green cover across the
city. We will develop more parks so that people will get more space for
recreation and stay fit and healthy.” 
Currently BMC is managing 30 parks and other public places and
facilities in the State Capital.
Tax Section sources at BMC said Holding Tax collection during
the 2016-’17 fiscal was more than Rs 12 crore than the previous one. This year
many defaulters have paid their arrears and it contributed towards more
Secondly, Advertising revenue collection has become more than
Rs 5 crore this year than its previous fiscal following a strict monitoring
activities and adoption of an on-line self declaration system. The Parking fee
collection also saw an increase in Rs 1.5 crore as it was developed on a
public-private partnership (PPP) platform. Markets also provided an increased
revenue base as leasing out of property at BMC-Bhawani Mall in Sahid Nagar has
become successful.
BMC Additional Commissioner Alok Kumar Kar said, “The State
Government has already designated three zonal deputy commissioners as special
certificate officers under the Odisha Public Demand Recovery Act, 1962, and if
needed, they may order for seizure of property in case of defaulters. This year
we are going to implement the Act for more collection of the taxes.”
Revenue Expert in-charge of Tax Reforms in BMC Bibhu Behura
added that while currently nearly 73,000 holdings (houses paying Holding Tax)
are there in the city. However, after a proper assessment and inclusion of all
new holdings the number may go above 1 lakh. Once all the holdings are included
in the city-wide tax base, the civic body would be getting nearly Rs 60 crore
alone from the Holding Tax.

It can be mentioned here that already under the
e-Municipality reforms the holdings are getting digitally validated, so that in
future the collection of Holding Tax and the digital validation could be
matched so that the mismatch between the assessment and the real collection
could be compared and collections enhanced.

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