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Kakinada corporation to auction assets of tax defaulters

Kakinada Municipal Corporation issued auction notices and removed water connections

KAKINADA: Municipalities are expediting the collection of property and other taxes to the maximum extent to achieve their annual collection targets.

A special drive is on to collect the arrears from the long-pending defaulters. Kakinada Municipal Corporation issued auction notices and removed water connections.

The authorities say the corporation is creating infrastructure facilities in the city and at the same time, it collects taxes from all sources by way of increased revenue.

The KMC aimed at collecting nearly Rs 40 crore and expects collections of nearly Rs 36 crore as last year. To achieve the targets, the municipal authorities are exerting pressure on property owners and the KMC has also created additional taxes on capital value and this increases 15 per cent of their tax. The additional tax revenue has to be collected to the extent of Rs 2.50 crore.

Though some of the property owners have paid their annual tax amounts immediately by making use of the five per cent rebate, they should also pay the remaining additional taxes, based on the capital value.

To increase the tax revenue, the KMC is intensifying the campaign and officials are moving around the city, warning tax evaders that their properties will be auctioned if they did not clear their dues.

According to the officials, the arrears are of Rs 6 crore and these are in long-pending. KMC additional commissioner Naga Narsimha Rao said auction notices were issued to 16 property owners and red notices to 2,800 owners and water connections were disconnected from 200 houses.

He said property owners should pay their taxes promptly for smooth running of the corporation even as they are involved in development activities and creating infrastructure facilities. KMC Commissioner Swapnil Dinkar Pundkar is reviewing the progress of tax collection with the revenue officials on a daily basis, and once a week with ground-level revenue staff.

Meanwhile, some property owners have not paid their taxes for 9 to 10 years. Now they have to pay their taxes with penal interest. Property owners say the government should waive their penalties and introduce a scheme to clear their dues.

According to KMC officials, many property owners are paying their additional tax based on the capital value to clear their dues for the current financial year.

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