A shop in Patna City. Picture by Sachin

Patna, Sept. 1: All four circles of Patna Municipal Corporation (PMC) have started the exercise of comparing the database of the number of electricity connections with the existing number of holdings in their areas in a bid to increase revenue collection.

According to sources, the PMC headquarters has directed the circles to find the gaps and to increase the holding numbers accordingly.

The exercise is expected to bring in a large number of small commercial establishments in the PMC circles — New Capital Circle, Bankipore, Kankerbagh and Patna City — in the tax loop as these shops have power connections but are not liable to pay property taxes as yet.

According to sources, the state capital has a capacity to generate around Rs 120 crore per year as holding taxes but the actual collection reaches only Rs 20-25 crore since about 2 lakh houses have still not been issued holding numbers.

Sheshank Shekhar Sinha, executive officer of New Capital Circle — the largest administrative circle of the PMC — told The Telegraph that the process of comparing the database would be over by next month. “It is expected to make a big difference and the number of total holdings should be up by 20-25 per cent after the exercise,” he added.