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Mahbubnagar Municipality tax collection declines

Mahbubnagar Municipality tax collection declines
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Tax collection in the Mahbubnagar Municipality has declined due to apathy on the party of the officials, according to sources. As it is well known...

Mahbubnagar: Tax collection in the Mahbubnagar Municipality has declined due to apathy on the party of the officials, according to sources. As it is well known fact that the main source of income for the municipalities and local bodies is taxes and revenue from rents on properties owned by them. However, the indifferent attitude of the officials towards collection of taxes on private properties and rents from the shops owned by the civic body, has adversely impacted the revenues of the Municipality for the past four years.

For instance, there are 98 commercial shops, which are rented out to various private traders in New Town area here. However, the Revenue officials in the municipality have not taken any steps to collect rents and property taxes for the past four years. The officials are now racking their brains as to how to collect the pending taxes from private properties and rents from traders.

The Mahbubnagar municipality should have earned Rs 4.41 lakh in the form of rents from the shopping complexes a month. However, the authorities are not even able to collect Rs 50,000 per month from the commercial complexes rented out to traders.

The officials are not able to exert pressure on tenants. This is attributed to political pressure being exerted on the officials. The officials have been accepting the small amount of rents being paid by the shopkeepers. It is felt that the officials should have acted decisively and collected the rents.

The tenants are making part payment while the arrears continue to mount. According to senior Municipal official. The tenants in the commercial shop defaulted on payment of Rs 86.42 lakh up to March this year. According to sources, the tenants in some shops have not paid rents for the last four years.

The officials have not collected rents from shopkeepers from some shops for last 51 months. Tenants in 14 shops have defaulted on payment of rents for the past 49 months. The arrears accumulated is Rs 45.73 lakh.

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