India: Poor tax collection goads NN hike license fee

KANPUR:  In view of the poor tax collection the Municipal Commissioner has directed the tax inspectors to speed up the revenue realisation in the review meeting held on Friday. The lowest amount of Rs 8.70 crore has so far collected. Out of a total of 4,06,076 Lakh properties in the municipal precincts, the tax has been realised from 1,07,591properties only. Even the Chief Minister Yogi Adityanath and the Urban Development Minister, UP Govt, have also expressed their respective annoyance over the poor revenue collection.

The reports speak that merely 25% realisation has been done in the whole financial year. This has made the Nagar Ayukt initiate orders for impounding the defaulters’ properties. Side by side he also directed for action against at least one tax inspector in the Zone.

A gradual decrease in the tax collection has compelled the municipal authorities to increase the license fee on as many as 12 businesses in the city areas. From the month of April onwards, the license fee will be hiked between twofold and fourfold thereby bringing a steep rise in treatment at the private nursing homes, parties at guest houses, food consumptions at the hotels and restaurants.   

However, S K Sharma, municipal commissioner said the increase was needed in the light of decreasing income of the corporation. A hiked fee will bring an added income from 7 to 8 Crore. The owners of these places were being charged the license fee standardized in the year 2010.

Now the new fee slab passed by the NN House on December 5, 2018, will be implemented from the month of April this year. However, the Nigam authorities have sought objections from nursing homes, hospitals, pathology labs, blood banks regarding increased license fee within 15 days.