Rural Panchayats see remarkable tax collection in 2024-25

Bengaluru: For the first time in history, rural gram panchayats in the state have experienced an unprecedented surge in tax collection, contributing significantly to their financial resources in the 2024-25 fiscal year. Udupi, Uttara Kannada, Shivamogga, Chikkamagaluru, and Raichur districts have topped the tax collection list.

Traditionally, rural gram panchayats have lagged behind urban local bodies in tax collection and have relied on government support for development projects. However, this year marks a significant shift, with gram panchayats achieving substantial tax collection above their targets.

Among the 31 districts, Uttara Kannada leads with 229 gram panchayats. Last year, it had a target of Rs17 crore tax collection but surpassed it by collecting Rs18 crore, achieving 107.16% of its goal and ranking first in the state. Following closely is Shivamogga, which has 262 gram panchayats.

Last fiscal year, it collected Rs28 crore against a target of Rs26 crore, achieving 106.17% of its target for second place.

Chikkamagaluru ranks third with 226 gram panchayats, collecting Rs33 crore against a target of Rs31 crore (105.92% achievement).

Udupi, in fourth place, had a goal of Rs37 crore from its 155 gram panchayats and collected Rs38 crore, achieving 103.15%. Raichur, ranked fifth, has 179 gram panchayats and surpassed its target of Rs15 crore by collecting Rs16 crore, achieving 102.35%.

In sixth place, Dakshina Kannada collected Rs42 crore against a target of Rs41 crore, achieving 101.10%.

The remaining districts include Gadag (99.66%), Kodagu (95.99%), Ramanagara (91.23%), Bagalkote (90.81%), Bengaluru Rural (87.73%), Kolar (86.82%), Haveri (85.96%), Davanagere (80.07%), Belagavi (83.46%), Chikkaballapur (82.84%), Dharwad (79.99%), Ballari (77.12%), Bengaluru Urban (76.19%), Chitradurga (74.55%), Koppal (71.30%), Vijayapura (70.69%), Bidar (69.01%), Hassan (68.89%), and Mandya (68.70%) all registered various degrees of success in tax collection.

On the other end of the spectrum, Yadgir district has been identified as the most underperforming in tax collection.

Following Yadgir are Vijayanagara, Tumakuru, Mysuru, Chamarajanagara, and Kalaburagi. In Yadgir, only 43.91% of the tax collection target was met last year, with the district collecting just Rs8 crore out of a target of Rs19 crore for the 2024-25 fiscal year.

Vijayanagara district collected Rs14 crore against a target of Rs27 crore (53.78%), while Tumakuru managed to collect Rs46 crore out of Rs72 crore (63.86%).

Mysuru collected Rs51 crore of its Rs79 crore target (64.97%), and Chamarajanagara collected Rs12 crore of its Rs18 crore target (67.96%). Kalaburagi achieved 24 crore of its Rs36 crore goal, reaching 68.34%.