Bhubaneswar: The Bhubaneswar Municipal Corporation (BMC) has decided to act tough against habitual tax defaulters and has initiated the process of disconnecting water and electricity supply to the defaulters.
The disconnection drive which began Saturday is being done in coordination with the Central Electricity Supply Utility (Cesu) and Water Corporation of Odisha (WATCO). The BMC has earlier identified as many as 364 big holding tax defaulters with over Rs 11 crore due on them. While a notice was sent to the defaulters in December 2019, another was sent in February this year as there was no response.
“Electricity and water connection of these habitual defaulters are to be disconnected for their defiance to pay holding taxes and ensure their early payment,” the BMC letter to Cesu and WATCO read. Sources said that the initial drive has targeted 18 defaulters which includes individuals, college and commercial establishments from North Zone and having dues up to Rs 1.83 crore
Among the 114 urban local bodies, BMC is the largest collector of holding tax. In 2019-20 financial year, BMC had earned a revenue of Rs 60 crore from holding tax. With more than one lakh holdings, the civic authority has targeted to collect Rs 60 crore from holding taxes.
Moreover, the civic body also signed an agreement with TG Swikruti Self Help Group (SHG) in February to rope in transgenders for collection of holding tax and trade licence fee in the Capital city. The TG Swikruti members have been given a target to recover Rs 11 crore and they have now crossed Rs 1.5 crore.