Kerala: Tax sop to Technopark stirs controversy

Thiruvananthapuram: A procedural error by the Tax Appeal Standing Committee chaired by BJP’s Simi Jyothish, granting tax relief to Technopark, received more attention than the budget itself, at the budget discussion on Tuesday. INC’s Nedumom V Mohanan, Thiruvallam councillor, raised the issue of the Committee issuing a verdict without presenting it before the council. A couple of months ago, the Committee issued a verdict saying that the (property) tax on Technopark’s Tejaswini building could be calculated at 6 per cent of annual rental value and not 18 per cent, which was the rate passed by the then Corporation council in October 2008.

Had the rate been 18 per cent, the amount remitted would have been over Rs 7 crore, and not Rs 1.82 crore, according to LDF councillors. BJP’s V.G. Girikumar said that it was a matter of pride that the committee was able to get Technopark to remit tax arrears.   In her reply, Simi Jyothish said that Municipal Act Section 509 bestowed the committee with the authority to dispose tax-related disputes. UDF’s V.R. Sini supported the claim saying that it was an appellate authority with its own powers. However Solomon Vettukad of the CPI and Palayam Rajan of Congress (S) said that there was a government order in 2013, which took away the appeal committee’s power to settle disputes in case of taxes up to 20 per cent.

Now, it could ask the Corporation Secretary to conduct a reassessment of taxes, according to Rajan. It is the Secretary who could settle such disputes. The matter did not come to the notice of either the Mayor or Secretary, until Technopark sent a letter of appreciation expressing gratitude for the tax relief. Health Standing Committee Chairperson K. Sreekumar alleged corruption in the decision. He said that other decisions by the appeal committee needed to be investigated. BJP’s Anil Kumar K. alleged irregularity in the Corporation-owned Rest House at Ulloor being given to E.K. Nayanar Charitable Trust. Deputy Mayor Rakhi Ravikumar responded that the Trust gave a monthly rent of Rs 2.5 lakhs for using the facility, and councillors could verify documents.