Revenue collection a challenge for Hassan CMC

The development works have suffered a setback due to reduced financial resources and poor revenue collection by the City Municipal Council (CMC). Even after the deadline issued by the CMC expired, 50% of taxes are yet to be paid.

The CMC should get Rs 13 crore annual tax from water cess, industrial licenses and rents from the commercial establishments. While it had collected Rs 12.5 crore during 2017-18, only Rs 4 crore has been collected during the first quarter in 2018-19.

Though the CMC had organised awareness programmes asking the people to pay the cess within the deadline and avoid interest, the members of the public have not come forward to pay the tax.

According to the 2011 census, the population of Hassan city was 1,55,009. According to available statistics, there are 3,440 sites and 24,300 buildings. In all, 20,715 buildings have water connections, including 19,430 residential buildings and 1,285 commercial complexes.

While the water tax fixed for residences is Rs 120, it is Rs 240 for non-domestic purposes. Out of Rs 3.46 crore, only Rs 54.94 lakh has been collected and Rs 2.91 crore pending. It has achieved only 15%.

There are 1,250 hotels and bakeries, 1,850 commercial buildings, 1,242 flour mill and workshops. While licences have been issued to 4,342 buildings, the tax received is Rs 7 lakh, out of Rs 12.63 lakh.

The rent received from the commercial establishments is only Rs 18.46 lakh out of Rs 1.54 crore, with only 11.94% achievement.

The CMC had to receive Rs 7,89 crore from the self-declared property tax. But it has received only Rs 4.34 crore up to June and Rs 3.55 crore is pending.

The CMC has introduced K2 (Khajane 2), an online system of tax collection and the old system of revenue officials collecting money and issuing receipts has been stopped. The new technology was adopted to encourage the people to make online payment. But, the new software has developed technical glitches, which has affected the tax collection.

Those, who pay tax before April, get an exemption of 5%. After April, the customers have to pay 2% fine for the delay. Even then, the people have not shown interest to pay the tax on time.

Speaking to DH, CMC President H S Anil Kumar said many programmes were conducted to educate the public on paying taxes within the deadline. Boards informing the citizens to pay taxes on time, have been fixed on the autorickshaws collecting door-to-door garbage. Three notices have been served to those who failed to pay the tax. Many try to evade the tax, despite knowing about the legal procedures, he added.

CMC Commissioner Paramesh said the people have been advised to pay taxes on time and avoid interest that will be an additional burden. "We will achieve the target by the end of the year," he said.

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Revenue collection a challenge for Hassan CMC

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