MMC lost Rs 1.5 cr as house tax arrears: audit report
HERALD REPORTER
MARGAO, JAN 10
The Margao Municipal Council seems to have not only lost revenue worth over Rs three crore from house tax, but also suffered a loss of Rs 1.5 crore due to non-levy of interest on arrears of house tax during the last three financial years.
Audit report compiled by the Accountant General, Government of India clearly speaks of huge arrears of house tax and rent for years together. “The loss of revenue due to non-collection of interest on arrears of house alone, reckoned at the lower rate of 12 per cent worked out Rs 115 lakh”, revealed the audit report.
The report reminded the Margao City Fathers that even the Mormugao Municipal Council, which is also A Class municipal body levies interest @ 12 per cent and 18 per cent per annum against dues for house tax and rent respectively since 1978.
Incidentally, in reply to the query raised by the audit, the Margao municipality states that interest was not imposed on the defaulters due to non-service of bills in time to the parties for want of manpower. Besides, the civic contended that the absence of a Recovery Officer also hampered recovery of arrears, but assured that the questions raised by the audit will be placed before the council.
Even as the civic body replied that the matter would be placed before the new council for levying of interest @ 12 per cent, the audit report has called for expeditious action on the part of the municipality to impose interest on the delayed payment of dues and the arrears of revenue as per the provisions of the Goa Municipalities Act.
Meanwhile, the audit report has stated that the civic body suffered loss of revenue to the extent of Rs 48.38 lakh due to non-adoption of the revised plinth rate
The report clearly stated that though the PWD has revised the plinth area prior to May 2009 and again in May 2009, the Margao Municipal Council has not adopted the plinth area rate for working out the estimated cost of the construction and that the license fees were continued to be assessed and collected based on the plinth area.
“This has resulted in short assessment and collection of construction license fees and thereby loss of revenue to the council”, the audit report stated.
