The non-approval of two tax rules by the civic body board would put pressure on the coffers of the Patna Municipal Corporation (PMC), already reeling from losses.
PMC has deferred its plan of implementing the Bihar Municipal Property Tax (Assessment, Collection and Recovery) Rules, 2013 and the Tax and Non-Tax Recovery Regulations, 2013.
Sources said the civic body would continue to suffer losses during the ongoing fiscal if the rules are not implemented soon. The property tax rules would have helped the civic body increase its ambit by compulsory registration and self-assessment of property.
The recovery regulations would have given disciplinary powers to the corporation for attaching properties, stopping municipal services and realise tax dues by selling the immovable assets of the defaulters.
“Both rules were presented in the previous meetings of the board but could not be approved as members raised reservations. The members also asked for incorporation of suggestions and clarifications on several clauses. Both the rules will be presented in the upcoming meetings of the board,” said a senior PMC official. Earlier, the urban development and housing department, in its circular on February 15, had asked all urban local bodies, including the PMC, to get rules approved by their respective boards before April 1.
On January 7, the cabinet approved the Tax and Non-Tax Recovery Regulations, 2012, while the property tax rules were given a nod on January 29. The corporation is also expected to launch a drive within a week to expand its holding tax ambit. “According to the directive of the department, we would launch a drive to expand the ambit of holding tax over residential and commercial properties within a week. The plan of action and deputation of tax collectors is being finalised,” said the official.
Sources said the civic body had suffered losses to the tune of around Rs 70 crore per annum accruing to non-payment of holding taxes by owners of residential and commercial properties in the past decade.
The corporation is estimated to have suffered the losses owing to non-assessment of around 2.5 lakh buildings, which have not been covered under the holding tax ambit.