Trichy Corporation Boosts 85% Tax Collection

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Trichy Corporation has increased the net tax collection by 85% by concentrating on the top tax delinquents who have been non-paying property tax for a long time. With a few weeks remaining in the financial year, the municipality has managed to collect Rs 120 crore in property tax, which is an increase of Rs 5 crore over the previous year. The municipality has also targeted government buildings and property under litigation in collection of dues, which has helped the municipality to increase the tax collection.

Trichy corporation collected Rs 115 crore in property tax till March 31, 2023. This year, the main focus was on tax defaulters who were delaying payments by Rs 1 lakh to 2 lakh per property. This resulted in around Rs 18 crore being collected in the last 2 months. Settlement of litigation regarding properties and persuading owners to pay dues also helped in increasing the tax collection. In the last 3 months, 1,477 new properties were identified for property tax collection. The number of assessed properties went up from 2.35 lakh in March 2023, to 2.37 lakh in March 2024. In December 2023, only 28% of the property tax dues could be collected. Now, 43% of the arrears have been collected. Hotels, theaters and other commercial properties were among the properties that were convinced to pay their arrears.

The reason for the high tax collection was revealed by officials who said that the city will get around Rs 80 crore from the CFC fund on the basis of its property tax collection performance. The city needs CFC funds for the operation and management of waste management and water supply in the city.

“We have presented a surplus budget for the city and the revenue generated from property tax is essential to fulfill the promises made in the budget. We have to deal with the gated community and apartments which have a part of flats with no dues and a part with zero dues. We have to get the support of the residents' welfare association to get the defaulter to pay up,” said V Saravanaman, Commissioner.

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