Poor recovery of taxes forcing AMC to become debtor

Lokmat News Network

Aurangabad, Oct 26:

The Aurangabad Municipal Corporation (AMC) is gearing up to obtain a loan of Rs 300 crore. The financial instability has occurred due to failure in recovering an outstanding which include property tax of Rs 878 crore and water tax of

Rs 382 crore. Hence the empty coffer has forced the civic body to become a debtor.

It has been observed that the citizens do not pay property tax. The civic administration due to political interference, do not dare to take penal action against these property-holders. As a result, the figures for unrecovered taxes increase every year.

There are at least 1.5 lakh properties that are out of property tax ambit. The AMC under the Smart City project has decided to implement GIS mapping of all existing properties and bring them on record. Its result could be seen in the financial year 2022-23, claimed the AMC administration.

Every year, the collection of property tax and water tax is between Rs 140 crore and Rs 145 crore. In the current financial year, the AMC has recovered property tax of Rs 53.59 crore and water tax of Rs 14.37 crore. The percentage of recovery is 11 pc and 14 pc. For the past four months, the civic officials are appealing to the citizens to pay their taxes, but the response is poor. The question arises why the AMC is unable to recover dues and take stern action, although there is no political obstruction, as the body is not there for the last couple of years.

Rise in outstanding figures

The AMC every year levy's 24 pc (12 pc interest and 12 pc penalty) on the principal amount of tax. The interest is compounding. This is the ratio of payment is negligible and outstanding figures inflate each year. it is learnt.