The Telegraph
Monday , August 18 , 2014
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External agency to collect tax

When plagued by manpower crunch, outsourcing is perhaps the best option.

After roping in private agencies and NGOs to look after sanitation in 33 wards, Dhanbad Municipal Corporation (DMC) has initiated steps to outsource household tax collection work as well. The selected agency will also collect trade licence fee from commercial organisations and offices besides water tax from houses, schools, colleges, hotels, restaurants, cinemas, shopping complexes etc.

A tender notice seeking applications from interested parties was floated today.

“The company will have to carry out a detailed survey to find out the exact number of households and trading units in each of the 55 wards spread across five circles — Dhanbad, Jharia, Katras, Sindri and Chatatand. The survey will help us widen the tax collection net and the annual revenue is expected to touch Rs 50 crore,” said DMC chief executive officer Ashok Kumar Banka.

At present, a tax of around Rs 6 crore per annum is collected from 28,500 households in Dhanbad circle. Tax collection in Jharia, Katras, Sindri, Chatatand is negligible, thanks to factors like shortage of staff (there are only one tax daroga and three tax collectors), lack of infrastructure and absence of data like the total number of households in all five circles.