The tax recovery by Margao Municipal Council has improved tremendously since Johnson Fernandes took over as the Chief Officer on Nov 24 2017, thanks to a new method adopted and also due to the long dialogue by Chairperson Dr Babita Prabhudessai with petroleum companies. However, the manpower crunch is hampering the functioning of the taxation section.
Following nine-month long discussions, the vexing issue of petroleum companies not paying the rent for the premises leased out to them from where they sell petrol, was finally resolved. The council has already received Rs 57 lakh from Hindustan Petroleum and Bharat Petroleum and what is remaining to be recovered now is only Rs 22 lakh which is expected shortly.
“It was a mistake on our part that since 2008 the rent was neither revised nor were the petroleum companies informed that there is an increase in the rent and that is why the matter was stuck for so long,” admitted Dr Babita.
Now that the issue has been resolved, MMC can expect more revenue from the petrol pumps in town as their rent has also been revised. While the rent of Kurade Petrol pump is fixed at Rs 79,000 per month, the monthly rent for other pumps is as follows: Virginkar (Rs 71,000), Keni (Rs 39,000) and Kavlekar (Rs 59,000).
From December 5, 2017 MMC changed its style of sending the bills for house tax which were earlier just posted to the people. However, now an official of the MMC visits the occupants at their houses and presents the bill and many people pay the house tax on the spot.
“On an average we collect around Rs 4 lakh every day,” said Johnson while praising the staff who visit the households to collect the house tax. Since the special drive commenced on December 5 the council has collected Rs 1,84,90,000 by way of house tax alone.
While ward Nos. 1 to 6 are totally covered, currently the bills are being presented in ward Nos. 7 to 12 and only a few bills are left to be submitted. Hence the areas covered are Fatorda, Aquem, Aquem Alto, Madel, Housing Board, Ambajim, Arlem junction, Calcondem, Khareband, Comba, Old Market, Mumurti, Holy Spirit church area, Malbhat and Borda.
While in December only six teams used to visit the households with the house tax bills, at present there are 12 teams visiting around 150 houses each day. After issuing the bill if the same is not paid, the council has now started serving demand notice 15 days after the bill was submitted.
“If the taxes are not paid even after the Demand Notice is served then we shall issue warrant of distress whereby we can lift any material from the person’s house that is valued at the amount payable to the MMC,” disclosed Accounts cum Taxation Officer Damodar K K Yelekar.
Chief Officer Johnson has reportedly given instructions to the Taxation Department to issue the warrant of distress and revive this practice that was used many years back but has not been invoked for quite many years now.
“Once we complete with house tax, we need to take up trade tax and rental with the same vigour,” said Johnson. While the trade tax arrears are to the tune of nearly Rs 2.58 crores the rental arrears amount to a little over Rs 28 lakhs.
However, all this good work will be negated if MMC does not get additional staff in the taxation section which is presently functioning without an accountant for nearly a year. “We are finding it difficult to find computer savvy people who are sorely required in the taxation section,” said Dr Babita.
