Team Herald
MARGAO: With The Margao Municipal Council (MMC) has come under intense scrutiny following its decision to significantly increase taxes and fees. While Chairperson of the BJP-led council Damodar Shirodkar defended the hikes as necessary to strengthen its finances, a recent audit report by the Directorate of Accounts for the 2023-24 financial year has revealed a troubling pattern of revenue leakages and financial mismanagement, raising questions about the council’s ability to address its fiscal challenges effectively.
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The audit report, submitted to the MMC Chief Officer, paints a grim picture of the council’s revenue position, highlighting uncollected taxes, mounting arrears, and systemic failures in revenue collection. Despite previous audit observations, the council has failed to implement corrective measures, leading to losses running into crores of rupees. One of the most significant findings is the neglect of a GIS survey, which has not been used for tax reassessment over the past six years. This oversight has reportedly cost the council an estimated Rs 20 crore in lost revenue.
The audit also revealed that the council’s revenue arrears stood at a staggering Rs 36.83 crore by the end of the 2023-24 financial year, accounting for nearly 30.52% of the total outstanding demand. Despite appointing a recovery officer in January 2022, the council failed to set specific targets or demand progress reports. The officer, who earns a monthly remuneration of Rs 30,000, has not been able to curb the growing arrears, which have increased from Rs 1,150.83 lakh in 2022-23.
During inspections, the MMC identified 141 illegal establishments in the market area for the year 2023-24. While show-cause notices were issued, questions remain about whether these businesses have been brought into the tax net. The audit has urged the council to take stricter action to ensure compliance with trade licensing bylaws and the Goa Municipalities Act. The audit has urged the council to take stricter action to ensure compliance with trade licensing bylaws and the Goa Municipalities Act.
The audit found that the South Goa Planning and Development Authority (SGPDA) owes the council Rs 112 lakh for garbage collection services, with no recovery efforts made despite a resolution passed in July 2022. The council had threatened to discontinue services if payments were not made, but no action has been taken so far. The audit has recommended escalating the matter to the government for resolution.
Additionally, the council has faced criticism for its handling of sopo fees, a tax collected from vendors. The audit noted that the council failed to recover instalments from contractors or issue notices for irregular payments.
