Kochi Corporation desperate to raise tax revenue

Kochi: The fund starved Kochi corporation is desperately trying to increase revenue by identifying new revenue sources even as arrears for more than Rs 100 crore owed by some of the big companies to the civic body are pending for years.    

Deputy mayor T.J. Vinod had indicated soon after assuming office that the civic body would initiate steps to identify additional revenue sources and measures to plug revenue loss. He is likely to announce several tax boosting initiatives in his first budget to be presented by the February end.  

The local body has been facing an unprecedented financial crisis as it owes more than Rs 50 crore to contractors alone. It, however, is expecting Rs 46 from the state government in pension commutation.

“Though the state government’s concurrence is needed to take any decision on revising tax, there is a need to make some amendments in the existing tax system,” Mr  Vinod told DC. “Tax exemption to buildings with less than 660 sq ft should be amended in case the building is rented out” he said.

Apart from enhancing tax collection, it also proposes to augment revenue from its buildings and other assets. Meanwhile, Konthuruthy division councillor C.K. Peter told DC that the civic body has failed in property tax collection to the tune of Rs 100 crore. “A big corporate owes Rs 30 crore while a major hospital has a due of Rs 26 crore,” he said.