BeMC to enhance ‘holding tax’ from fiscal 2020-21

Berhampur: The enhanced rates of holding tax as applicable to several categories of households under the Berhampur Municipal Corporation (BeMC) limits will be made available on its website which is being updated now to accommodate changes.

According to sources, there would be a substantial enhancement of the tax under BeMC limits, which would be supposedly collected from the coming fiscal. The civic authorities are all set for a major hike and house owners paying at the rates of Rs 100 to Rs 200 every year, for past several years, would now have to pay much more than before.

It is known that, the minimum rate of holding tax could be Rs 600 per year. Large houses, multistoried buildings, shopping malls, marriage mandaps and cinema theatres including government bungalows could be charged at a very higher rate. BeMC authorities have not only decided to enhance holding tax, but also most other municipal taxes.

Moreover, apart from enhancement of most municipal taxes, the civic authorities have aggressively focused on recovery of old dues, outstanding against various government offices for past several years. As result, huge amount of revenue was raised by December, 2019.

Worthy to note, the holding tax was revised in early 1960s for the last time. The same is now being revised again after long 60 years. Tenure of elected representatives of the civic body has ended September 2018 and by default the state government has taken over charge of administration of corporation.

Annual collection of holding tax alone is around Rs 4.5 to Rs 5 crore. It is estimated that, overall annual collection would increase manifold from the coming fiscal. There are over 57,000 households of different categories under BeMC limits and several constructions are underway here, municipal sources informed.

Now that, over one and a half years are about to be completed, the state government has kept municipal elections in a fix. Steps are being taken to enhance municipal taxes in a situation where mayor and corporators of the civic body are not there, sources said.

Notably, Ganjam District Collector has additionally been appointed as administrator of BeMC. The civic body has completed eleven years after its formation as a municipal corporation. However, such a crucial fiscal decision for generating revenues has been taken in a meeting of officials in the local self-governing body, locals raged.

It is apprehended that, such a decision of the BeMC authorities could spark resentment among locals. Even in some cases, people might get to roads for agitation, local intelligentsia expressed. Things would have been better had BeMC authorities taken local people into confidence and enhanced rates, the intelligentsia opined.

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