Chandigarh : The urban local bodies (ULBs) under the Local Government Department have failed miserably to recover property tax and user charges, running into crores of rupees.
Against the guidelines of the Jawaharlal Nehru National Urban Renewal Mission to achieve at least 85 per cent collection of property tax, the ULBs could realise property tax ranging from 48.54 per cent to 54.14 per cent between 2015 and 2020, an audit by the Comptroller Auditor General (CAG) of the financial resources of the ULBs has revealed. The arrears of property tax, as on March 31 stood at Rs 216.84 crore.
The CAG pointed out that during a test check of the ULBs, it found out that in case of Mohali and Patiala, there was no database to identify the correct number of properties existing in the respective areas and the property tax being realised on the basis of self-assessment.
The CAG report also pointed out that the Property Tax Board constituted to improve the tax recovery had not been effective.
Besides, the ULBs have failed to recover user charges (water and sewerage cess) varying between 14.69 per cent and 17.46 per cent between 2015 and 2020. The outstanding arrears at the end of year 2019-2020 stood at Rs 535.96 crore.
Rs 127 cr not transferred
Punjab State Power Corporation Limited (PSPCL) collected Rs 404-crore municipal tax between 2017-2018 and 2019-2020. However, it transferred Rs 236 crore to the ULBs, leaving an outstanding amount of Rs 127.81 crore.
3.86 lakh houses exempted
- One-third of houses — 3.86 lakh — are exempted from property tax in 13 civic bodies
- Residential properties that constitute 70% of total taxable properties contribute 11% to the total collection
- Non-residential properties that constitute 30% of the total taxable properties contribute 89% to the total collection