Bhubaneswar, April 26: Several government and private-run institutions across the city have failed to deposit their holding tax with the municipal corporation.

Though the civic body has finalised its holding tax receipt as Rs 20.21 crore for 2012-13, it has lost around Rs 6 crore to these institutions and organisations.

With the rising cost of the management of various civic issues in the city, the corporation is finding it tough to take up projects with such a low tax collection.

While Sum Hospital and the Central Electricity Supply Utility have failed to deposit Rs 2.08 crore and Rs 2.61 crore, respectively, KIIT University has paid Rs 62 lakh of its Rs 1.20 crore assessed value for holding tax.

Sources said the university had promised to pay the rest of the amount shortly.

“Originally, the holding tax of KIIT University was assessed at Rs 7.39 crore. But they appealed at the additional district magistrate’s court for a revision and the amount was settled as Rs 1.20 crore,” said a tax official.

Government offices such as the heads of building (Naa Tala), accountant general’s office, Commissionerate of Police, state urban development agency, Gopabandhu Academy of Administration, Doordarshan studio, Matsya Sadan, lift irrigation building, CID crime branch, regional transport office, directorate of geology and Odisha state road transport corporation have failed to deposit the holding tax with the corporation.

Among the educational institutions Utkal University, English Language Teaching Institute at Chandrasekharpur, Hi-Tech Medical College at Pandra, DAV Public School (Ghatikia), Venketeswar English Medium School, Islamic Education Building at Unit-IV, Vivekananda Siskhya Kendra at Chandrasekharpur, B.K. College of Art and Crafts at Khandagiri, Biju Patnaik College at Jayadev Vihar and Kendriya Vidyalaya No. III at Mancheswar have not deposited the holding tax for 2012-13.

Deputy municipal commissioner Krushna Prasad Pati said: “Within a fortnight we will issue letters for collection of dues to those who have failed to deposit their holding tax.”

The institutions will be given another opportunity to deposit the amount within one month. If they fail to deposit their dues, we will consider legal action.”

Sources said the holding tax collection was only Rs 4.36 crore till December 22. As the tax collection was stopped because of legal issues, the tax team started their work after December 22 last.

“The collection of Rs 15.85 crore within such a short time was an impressive work. We would have crossed the Rs 25-crore mark had the institutions paid their dues within March 31. We are still hopeful that many will come forward to deposit their dues even now,” said another official.

Last year in March, the civic body council had decided to put up hoardings displaying names of holding tax violators at various strategic locations. But this year, no action was taken in this regard.

On the other hand, a bill to replace holding tax as property tax is also lying with the state government as it is to be tabled in the Assembly.

“The corporation with the property tax can collect up to Rs 120 crore if the bill is passed. Even with a fresh assessment of new houses in the city, the current holding tax collection can also go up,” he said.

“Mere passing of the Odisha Municipal Corporation Act, 2003, cannot ensure benefit to the civic body, but it has to get enough financial power, so that development work can be taken up,” said councillor of ward No. 49 Amaresh Jena.