For
most of local Governing bodies or Municipal Corporations of the
cities in India, property taxes remain as one of the most important
heads of income. However, the mechanism though which these
corporations attempt to collect property tax, is very lethargic and
has been made totally inefficient by the rampant corruption. With the
result, that only a small percentage of the total due tax amount,
gets actually deposited in the coffers of the corporations. If we
consider as an example, my home city of Pune, the Municipal
Corporation here has a defaulted backlog of receivable tax amounts
already assessed but not yet received, of around 42.3 Million
Rupees.
In the
total budget of 300 Million Rupees, the property taxes are expected
to contribute about 53 Million Rupees to the coffers of the Muncipal
Corporation. Thus we can see that total amount receivable now is
almost reaching the figure of yearly expected income from this tax.
In spite of this being the situation, Pune Municipal Corporation is
unable to collect this receivable amount.
Bengaluru
Muncipal corpoation is a similar local Governing body with a large
population staying in its jurisdiction. This corporation has been
unable to recover an amount of about 400 Million Rupees from the
citizens as assessed property taxes. Corporation keeps sending
recovery notices to the defaulters, but the measures have been found
quite ineffective as total recovery seems to growing from year to
year. The Municipal Commissioner thinks that this outstanding
amount has now reached such a large proportion of the total income,
that the corporation has now started feeling a shortage of funds for
development works and provision of facilities to the Citizens.
Bengaluru
corporation has now come up with a new measure that has been found
very effective yet highly noise polluting. Corporation has now
appointed a troupe of drum beaters, who accompany the tax recovery
officers. This troupe makes daily visits to tax defaulter individuals
or companies and beat their drums right in front of the defaulter's
homes or offices. The idea behind this drum beating is that everyone,
who stays or works in the neighbourhood of a tax defaulter, would
become aware of the default of his neighbour that he has not paid due
property taxes for many years. A Municipal Corporation official says
that this measure makes the tax defaulters feel embarrassed and makes
them pay. “The louder the sound drums, the more is the
embarrassment. “
A
multinational corporation has rented a huge floor space in a city
building. The drums were beaten recently in front of the building,
with the result that the owner of the building, the tenants and
people working in neighbourhood buildings, all were quite
embarrassed. The city official say that the owner of this particular
building has defaulted over payment of taxes worth several Millions
of Rupees and does not show any cognizance even of the demand notices
sent to him. This being the case, corporation came up with this
crude, uncivilized no doubt, but extremely effective measure.
The
drum beaters troupe beats the drums with a particular rhythm so that
everyone around becomes acutely aware of the beats. Though the people
staying or working in the spot, where drums are being beaten, become
embarrassed, fed up and frustrated, the passersby consider this as an
effective measure.
I do
not know, what Bengaluru Municipal corporation plans to do with such
habitual defaulters, who refuse to take cognizance and pay the taxes
even after the drums were beaten in front of their property. The
only course open to the corporation perhaps is to take court orders
and seal the properties .
The
drum beating measure however, seems to be an effective way for
recovery of taxes. The Municipal corporation in my home town can also
try this, so that their tax collection improves and they can provide
more amenities for us. But I sincerely wish that no one in my
neighbourhood is a defaulter, because I would be peeved and
irritated to hear the drums in my neighbourhood. HaHa!
21
September 2012
OMG!!!
ReplyDeleteAnd this happens only to those who do not bribe the corporation officers or tax collectors?
And what about the neighbors - good law-abiding, prompt payers of taxes? Why do they have to suffer their neighbor's delinquency?
Are there no laws and courts and imposition of late fees, and evicting non-payers from the property, sending owners to jail or some such measure?
I was very happy to read about EVM's yesterday, but don't export this brand to other countries. They have better ways, they have laws, courts, rights, and people are very aware of their rights and responsibilities.
Mhasakar-
DeleteDon't take it so seriously.