21 Feb 2019  |   06:04am IST

PMC hikes fees and tax after 26 years

Team Herald

PONDA:  The Ponda Municipal Council (PMC) on Wednesday decided to hike the fees of trade licences, commercial tax, and house taxes. This was decided at a special meeting.

The council is hiking the fees and taxes after 26 long years. However, as per law it is mandatory to conduct review of fee and tax structure every four years. 

PMC Chairperson Pradeep Naik said people need not worry as the hike in fee structure is normal and done considering that the fees and taxes have not been reviewed for the last 26 years.

He said that the municipal expenditure has increased several folds worsening the financial condition. Therefore, he said, the decision was taken to hike the fees and taxes.

The council observed that the municipality spends yearly around Rs 8 crore, including Rs 6 crore, on staff of salary and other expenses. However, the yearly income from taxation and other sources is just Rs 4 Crore that is half of the expenditure. 

The decision to hike the fees and taxes was taken after the auditors raised queries over the disparity in income and expenditure. The PMC also lost its major portion of revenue since past few years after agitation by vendors questioning the hike in sopo. They almost stopped payment of sopo in protest.

Following the decision to review fee structure on Wednesday, it was resolved to hike the flat/house tax to Rs 7 per sq mts from existing Rs 5.50 with a hike of Rs 1.50. The fees for transferring the flat has been hiked by Rs 1000, that is, from existing Rs 5000 to Rs 6000. In case of blood relation the fee for transfer of house is increased by Rs 250 from existing Rs 500.

The PMC also observed that it did not hike the fees for performing final rites in its crematorium and burial ground. Since past 10 years, the PMC has been charging Rs 1500 for cremating a body from PMC area and Rs 3000 for a body coming from a panchayat area. The same fee structure was increased from Wednesday: for cremation of a body from PMC area will now be Rs 3000 and those coming from outside PMC jurisdiction will be charged Rs 5000 per body. For burial it was decided to hike the fees to Rs 3000 for people residing in PMC area as well as panchayats.

The PMC also hiked fees for providing NOC for water and light connection to Rs 1000 respectively for water and light for per house/flat. Since city has small area in its jurisdiction and no scope for new residential complex, it has decided to charge Rs 2000 for occupancy certificate from existing Rs 1000 while for houses it will Rs 1000 from existing Rs 500.

The PMC also hiked fees under various heads and expected that it would help to compensate the losses it suffers annually on account of its expenditure.

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