Interest subsidy not giving relief to KMC exchequer

KHAMMAM: The state government’s offer of a subsidy on interest to property tax arrears in urban bodies is not helping the Khammam Municipal Corporation to enhance its collections. Only 25 per cent of the tax arrears could be collected so far while only 21 days are left to before the deadline on October 31.

Property tax arrears total Rs 16 crore in 60 KMC divisions. Due to the present cash crunch, the state government wanted to hasten the collections and hence, on July 17, announced a 90 per cent interest relief on tax arrears if payment is made before October 31.

The bill collectors could get only `4 crore so far out of the total `16 crore.
There were 26,610 tax assessments in KMC limits. The revenue department did not have a proper plan to collect the arrears.

Revenue inspectors are allegedly being enticed through bribes by business establishments that have massive arrears. Nearly 55 business complexes in Wyra Road and Kaman Bazar are not ready to pay their tax arrears of  Rs 1 crore.

Property tax collection in middle class residential colonies is good compared to the properties located in business areas.

About 3,200 units in 35 residential colonies paid property tax and 50 per cent of lower middle class or poor are also paying their tax.

A revenue official said, “We are not giving proper time to collect the tax arrears. Swantatra Bharatha Vajrostavalu, Bathukamma, identification and verification of Aasara cards, survey of GO- 59 and Bathukamma festival hit the tax collection work and it impacted on the tax collections.”

The office of the director of municipal administration felt unhappy about the poor tax collections and sent a circular to the KMC to complete the work before the last date. Revenue officials have been asked to campaign in all 60 divisions and collect the tax arrears.