Sambalpur, Feb. 19: The Sambalpur Municipal Corporation has launched a drive to collect holding tax from the commercial establishments of the city. The civic body has asked the defaulters to pay the outstanding holding tax within three days.

"Holding tax worth Rs 2 crore has been outstanding against the commercial establishments. We have asked them to clear their dues in three days. If they do not pay within the stipulated time, the civic body will initiate action and close down those business establishments," said the corporation's deputy commissioner S.S. Bhoi.

A team of civic body workers had also raided an automobile showroom and sealed it yesterday. Rs 8.39 lakh was outstanding against the commercial establishment. However, the corporation allowed the showroom to open after the outstanding amount was paid. This is the first time the civic body closed down a commercial establishment.

Sarat Banji, a local resident, said: "The civic body should collect the holding tax properly so that the money collected would be spent on developmental works."

Balgopal Panigrahi, another local resident, said: "A large number of commercial establishments are evading tax. Hence, the civic body is losing revenue. It should take serious steps to earn from the advertisement hoardings as well."

"Holding tax is a major source of revenue for any civic body. Besides, it takes pretty long for the finalisation of holding tax for new buildings both domestic and commercial. The civic body provides facilities such as roads, street lights and sanitation but it does not get its the proper amount of tax," said Ardhendu Panda, another resident.