THIRUVANANTHAPURAM: The growth in the revenue of local self-government institutions (LSGIs) has demonstrated a negative trend between 2009-10 and 2013-14.
The audit report on LSGIs tabled in the Assembly on Monday revealed that tax revenue of Rs 25.38 crore was not realised in the 71 LSGIs scrutinised.
“If the performance of all 1,209 local bodies in the state were considered, the unrealised tax amount would have easily crossed Rs 300 crore,” said N. Nagarajan, principal accountant-general (general and social sector audit).
The tax revenue of local bodies consists of property tax, profession tax, entertainment tax and advertisement tax. “The collection efficiency of property tax, which was the major constituent in the revenue of the LSGIs, was not encouraging,” the report noted.
Property tax is a recurring tax levied by GPs and ULBs on buildings and land attached to them. It constitutes more than 50 per cent of the total tax revenue of local bodies.
The average collection efficiency ranged between 50 and 60 per cent in six grama panchayats (Parassala, Vallathol Nagar, Keezhmadu, Koovappady, Paipra, Tholicode) and three urban local bodies (Thrissur, Koothuparamba and Ottappalam), and between 60 and 70 per cent in five grama panchayats (Chirayinkeezhu, Kallara, Pothencode, Thirupuram and Feroke) and four ULBs (Nileshwaram, Punalur, Thrikkakkara and Varkala),” the report noted.
The complete and accurate database of all properties such as residential and nonresidential, Central/State government properties and properties of autonomous bodies is a pre-requisite for raising demands and collection of property tax. Audit observed that the test-checked LSGIs did not have a comprehensive database of all assessable properties.
Both Kerala Panchayat Raj Act and Kerala Municipality Act were amended to levy property tax on the basis of plinth area of buildings. However, this was not followed.
The amendments to the two Acts had also taken out the exemption given to unaided educational institutions from paying property tax. Still, these institutions continue to be exempted.
