Team Herald
MARGAO: The Margao Municipal Council (MMC) is facing a severe financial setback, with the total revenue arrears for the 2023-24 fiscal year soaring to an alarming Rs 36.83 crore.
However, there seems to be no effective recovery mechanism in place to address this issue.
In addition to the mounting arrears, the civic body has uncovered 141 “illegal” establishments operating without a trade licence during the same period. While show-cause notices were issued to them, it remains unclear whether any steps have been taken to bring them under the tax net.
MMC chairperson Damodar Shirodkar said the council collects a meagre Rs 1.5 to 2 lakh daily towards recovery of arrears. Most believe this amount is insufficient and ineffective in addressing the growing revenue gap.
Equally disconcerting is the failure of the South Goa Planning and Development Authority (SGPDA) to pay garbage fees amounting to Rs 1.12 crore, yet no action has been taken to recover this outstanding sum.
The MMC’s audit report reveals a staggering revenue loss of approximately Rs 20 crore, primarily due to the failure to reassess property and business taxes based on the recently conducted GIS survey. The survey identified 5,410 units liable for house and sanitation taxes, but only 4,441 are currently paying. Similarly, 2,358 businesses were identified, but only 1,671 are paying trade taxes.
Voicing concerns over the lack of accountability, former MMC chairperson Savio Coutinho said that the council survives mainly on the contributions of loyal taxpayers, while failing to take action against the defaulters.
“The council hardly cares about netting in the revenue from defaulters,” he said, pointing out instances of corruption in the council. He alleged that public money is being misused which include Rs 65 lakh from sopo contractors, Rs 18 lakh allegedly misappropriated by a clerk and Rs 8 lakh reportedly siphoned off by e-rickshaw providers.
MMC chairperson Damodar Shirodkar said that the civic body is actively working to recover the pending arrears.
“On a daily basis, the MMC collects Rs 1.5 to 2 lakh towards recovery of arrears, with the overall revenue collection amounting to Rs 6 to 7 lakh per day,” he said.
Shirodkar mentioned that special drives were conducted in the past to recover pending arrears and that the civic body is committed to resolving the issue.
He confirmed that a special recovery team has been set up to take up the issues of revenue losses and property assessments.
Citizens and stakeholders await further developments regarding the effective recovery of pending dues and the resolution of the systemic issues that continue to plague the civic body.