Dhenkanal Municipality losing revenue

Dhenkanal: Lack of enforcement and revaluation, absence of trade licence and non- collection of holding tax and shop rent have resulted in huge loss of revenue for Dhenkanal Municipality thus affecting development works.

According to reports, Dhenkanal Municipality has been losing revenue worth crores of rupees due to lack of collection from various sources. Many shopkeepers have not paid rents for the last three to four years. They had been demanding waiver during the period of Covid pandemic. But the Municipality has refused them waiver as there is no government guideline in this regard. Thereafter, the shopkeepers have started paying rents in instalments .

Besides, many shops have come up in residential buildings over the years and are being used for commercial purposes but holding tax still remains domestic in the absence of revaluation for the last 10 years. Hundreds of shop establishments are running businesses without trade licence due to lack of enforcement and government is losing revenue worth lakhs of rupees. No notices are being issued to the defaulting traders. There is slackness in collection of holding tax.

Recently, Special Audit and Vigilance conducted a raid and were not able to trace funds utilisation worth Rs 1 crore. A tax collector, Santosh Roul, was arrested. Municipality Executive Officer Debiprasad Rout said, “we have issued notice to collect shop rent worth Rs 1 crore. Collection of pending dues is in progress and will continue for some days. Revaluation will be done after puja.”