Its bustling trade and commerce has earned Margao the status as the State’s commercial capital. The town plays host to not just a couple of mega markets and malls, besides scores of shops and establishments, but businessmen and traders from all corners of the country. Guilherme Almeida tries to find an answer to the oft-repeated question of whether the local civic body has successfully tapped the vast revenue potential out of the town’s commercial status or has turned a blind eye to the revenue drain through the gaping loopholes
Six thousand, two hundred and twenty one! That’s the number of trade and business establishments registered in the taxation records of the Margao Municipal Council. The figure is inclusive of the number of establishments that have shut shop over the years. On paper, the figure may look impressive, but there appears a clear mismatch with the ground reality.
Compare the figures with that of the Class ‘A’ Mormugao Municipal Council, which is closely behind the Margao municipality with close to 5774 registered establishments, bringing to the fore what some Margao civic babus often admit in private that thousands of shops and establishments are operating in the commercial capital sans license.
A glance at the budget estimates for the current financial year 2014-15 will give an insight to the revenue generated from trade licenses.
The civic body has projected revenue of Rs 50 lakh from trade licenses for the current year.
Many in the know in the corridors of the civic body would admit that revenue from trade licence ought to have been over 1 crore of rupees given the number of establishments dotting the city, clearly going to show that there are still many establishments still to be brought under the tax net.
That’s not all.
Even assuming that Margao plays host to only 6221 business establishments, but not all the registered shops have been paying the trade fees to the Civic body.
A glance at the budget estimates of the past financial years showed that while the revenue project was around Rs 50 lakh, the revenue earned was in the region of Rs 25-30 lakh per annum.
Says an official in the know, “Every new Chairperson or Chief Officer lays stress on recovery of revenues, but turns a blind eye to bring the large number of establishments operating without trade license in the tax net. The Margao civic body is losing precious revenue year after year for want of action, while the traders make merry at the cost of the municipality.”
