Cash-starved Chas Municipal Corporation (CMC) has decided to increase holding tax on shops and residences of the township, expecting its revenues from tax to shoot up to Rs 7 crore from the existing Rs 3 crore.
According to its proposal, sent to the state urban development department headquarters in Ranchi for final nod, holding tax rate on houses situated near principal roads more than 40 feet wide, including national highways, would be increased by 80 paise per square feet from the existing Rs 2.20 square feet.
For houses and other residential units situated on main roads between 20 feet to 40 feet wide, the new holding tax rate would be Rs 2.40 as opposed to the earlier Rs 2.20, an increase of 20 paise per square feet; while for houses on roads less that 20 feet wide, the new rate would be Rs 1.80 against the earlier Rs 1.60.
The proposals have been drafted by former Chas additional commissioner Sandip Kumar, who is now director of District Regional Development Authority (DRDA) and OSD to Bokaro deputy commissioner and subsequently approved Chas mayor Bholu Paswan, SDO Shashi Ranjan and 32 ward councillors of the corporation.
DRDA director Kumar said that those living in asbestos-roofed houses on principal roads would have to pay holding tax at the rate of Rs 1.20 per square feet (earlier 70 paise), while those in similar houses on main roads 94 paise per square (earlier 74 paise) and those on roads less than 20 feet wide road 72 paise per square feet (earlier 52 paise).
As per the new proposal, mud houses on any kind of road would not have to pay any holding tax. BPL families have also been exempt from paying holding taxes.
"Chas corporation is determined to cater to more facilities for all those living within municipal limits. These include better roads, round-the-clock drinking water facilities, better drainage system, parks, well-lit roads, timely disposal of garbage, installation of hand pumps, besides other amenities. Hence we need more revenue," mayor Paswan told The Telegraph.
He said after the revision of rates, the corporation hoped to collect a minimum of Rs 7 crore revenue per annum from holding taxes alone. "If the assessment was done properly at all houses, the figure can even touch Rs 9 crore," the mayor added.
