The Hindu : Mayor denies charges on tax assessment system

Online edition of India's National Newspaper
Thursday, Jun 05, 2003

Southern States

Southern States - Kerala-Thiruvananthapuram

Mayor denies charges on tax assessment system

By Our Staff Reporter

THIRUVANANTHAPURAM June 4. The property tax assessment system of the City Corporation has sparked off a row with the UDF parliamentary party leader, K. Maheswaran Nair, terming it as unscientific and the Mayor, J. Chandra, defending it saying the rate is much less compared to the tax levied by other corporations in the State.

Prof. Chandra today denied Mr. Nair's allegation that the corporation was collecting heavy tax from the city wards as well as those in the suburbs without providing the basic amenities and addressing the civic issues such mosquito and stray dog menace and refuse removal. She denied the allegation that the tax assessment system was unscientific.

Prof. Chandra said in a release here today that the tax rate in Thiruvananthapuram was much less compared to other cities in the State. As per Section 233(3) of the Kerala Municipalities Act, 18 per cent of the assessed annual rent rate was being levied as property tax in all the 81 wards, including the 50 old corporation wards.

As per the rules, the council can levy 12 to 25 per cent of the assessed annual rent rate. Only six per cent of the annual rent rate is being collected as property tax from the wards in Nemom, Thiruvallam, Kadakampally, Ulloor and Attipra panchayats which have been annexed to the corporation.

The corporation has initiated developmental activities in phases in the suburbs which have been annexed to the corporation. These areas had been neglected earlier. These wards too would become equally developed like the city wards and only then would the corporation unify the tax structure in all the wards, Prof. Chandra said.

By streamlining the tax collection system, during the last financial year the corporation had received a revenue surplus of Rs.8 crores and it was included in the capital account. This was a unique achievement of the corporation and it was proof of efficiency in tax collection. The amount was channelised for various developmental activities, Prof.Chandra said.

Since this council came to power, a sum of Rs.11 crores had been spent for construction and maintenance of corporation roads. A sum of Rs.4 crores was spent last year for street-lighting alone. The work on putting up electric poles and extending powerlines was affected due to shortage of materials. Cheques worth lakhs of rupees given by the corporation to the KSEB could not be honoured due to the treasury ban. This too has thrown a spanner in the works of the corporation, Prof. Chandra said.

A sum of Rs.3 crores had been deposited with the Kerala Water Authority for the drinking water schemes of the corporation and works are various stages of completion. Cleaning operations were being meticulously carried out by the corporation, she said.

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Mayor denies charges on tax assessment system