THE JHARKHAND STORY NETWORK
Daltonganj Jan 29: Medininagar Municipal Corporation (MMC) is tapping its untapped sources of revenue.
The tapping is from holdings taxes to the fees to come from the hoardings. Medininagar abounds in hoardings. The hoardings are mostly of coaching centres and health speciality centres. Some hoardings are a hazard to the public safety.
Progress on revenue collection
As against the target of 13.75 crore collection of revenue in this outgoing financial year 2024-25, the MMC has till January 28, collected 8.40 crores.
City Commissioner Md Jawed Husaain told the Jharkhand Story correspondent today “We have little over 60 days before this financial year closes down. We look forward to the enormous receipts for the holding taxes in the last two months. Holding taxes pour in the last quarter of the financial year.”
Unpaid dues and defaulters
On being asked as to whether there is any top defaulter sitting or sleeping over the payment of the holding taxes, City Commissioner Jawed known by his first name said, “Their number is around 50. These 50 owe 36 lakhs to the MMC. We understand these top defaulters will be discreet and clean enough to clear our dues before the MMC is forced to take action against them.”
Asked if can such a defaulter of municipal taxes run the risk of getting his bank account on hold under the directive from the MMC. Jawed said, “There is a provision of it laid down in the Jharkhand Municipal Act. We wish the tops shouldn’t stoop too low.”
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Challenges with municipal shop rents
City Manager Samita Bhagat had an interesting story that she shared with this correspondent when she said, “We have 1268 municipal shops. Nearly 40 per cent of these municipal shops are having our monthly rent over a period of 24 months to 36 months.”
“The moment we seal these municipal shops on account of their not paying our rent, within hours of the seal of their shops, these shop owners come panting to our offices here and deposit a good amount of the rent unpaid so far,” she added.
Samita Bhagat said, “It’s a blatant dishonesty and a malafide intent.”
Rent for the municipal shops are recovered without penalty. Again there is no provision for delayed payment by compound interest. It has given a leeway for these municipal shops’ owners to take MMC for a ride.
However, the MMC has collected 22 lakhs of rupees as a penalty from those residents who have violated the norms and standards of the MMC, reminded the City Commissioner.
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Tax exemptions and proposals for expansion
There is a prime and precious chunk of the holdings in the Industrial Area here in Medininagar which have a kind of immunity to pay taxes to the MMC here.
Sources said if the structures in the Industrial Area are made taxable then there is no reason the coffer of the MMC will not swell. It’s a huge money that is untapped all for some kind of immunity to the occupants of the Industrial Area.
Close to this kind of immunity to taxes, government buildings, government schools, government hospitals etc just sit over the municipal taxes.
As there is no budgetary allocation for the payment of the taxes to the municipal corporation, these government institutions enjoy this immunity.
Sources revealed that the first priority is to secure budgetary allocations for the taxes owed to the municipal corporation. Currently, a significant amount of 4.62 crore remains unpaid, primarily from government buildings and institutions.
The sources also pointed out that the Bazar Samiti is exempt from municipal taxes, despite benefiting from the services provided by the municipal corporation.
It was suggested that the urban development and housing department should work towards bringing entities like the industrial area and Bazar Samiti under the municipal corporation’s tax system.
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While the municipal corporation is entitled to generate revenue, sources emphasized that it must simultaneously improve civic amenities for residents, ensuring that these essential services are not neglected.
In addition, sources noted that the state government is considering the creation of a Tax Daroga to handle the financial burden of the Maiyyan Samman Yojna.
Lastly, it was reminded that the municipal corporation must be cautious in its approach to taxation and rent, so as not to hinder trade and commerce in the region.
