Why do municipalities in the State not feel the compulsion to collect tax? It’s not that they don’t, but the sum of uncollected tax, which is Rs 55 crore, is a cause for worry because it reduces the capacity of the municipality to undertake development works independently. The Corporation of the City of Panaji tops the list with total arrears of Rs 15.78 crore, which is more than one-third of the budget passed for 2017-18. Of this, house tax arrears are Rs 6.24 crore while rent owed to the CCP is Rs 6,47 crore. The story is not different for the Mormugao or Margao municipal councils which have arrears of Rs 15.03 crore and Rs 9.62 crore respectively.
Tax collection is an issue with municipalities as well as panchayats. The problem with taxes is that they have to be collected and this means every municipality has to have a chief officer who is determined and councilors who will not get in the way. Without a set of dedicated officers armed with a legal bludgeon or the threat of high fines for delay, house tax collection will always be a problem. While most residents pay their taxes, there are a few large and small defaulters who prefer not to pay. They are able to get away with it on account of the lengthy legal process involved in collection of such dues. The only time a property owner is compelled to pay is when he or she needs some clearance from the municipality. This does not always work in favour of municipalities and hence arrears keep piling up.
If the Urban Development Minister Francis D’Souza is to be believed, the Mapusa municipality has found a way around the problem by hiring a tax consultant. The council has approached the problem ward-wise because it sharpens focus. Other municipal councils are still grappling with the problem and this is because most municipalities have not mapped their jurisdiction and are not aware of where each house is located or who the owner is. Part of this problem is due to the random manner in which house numbers are allotted. There is no pattern and hence local bodies are unable to figure out how to go about the business of collecting house tax in an orderly fashion. Today, with aadhaar cards and mobile connectivity, municipalities should be in a position to monitor payment of taxes in real time and instantly send out messages to defaulters. The problem is councilors lack the power to implement anything and the government, which controls municipalities, is far behind in use of available technology for better governance. Tax collection is the duty of the government and in this case the municipalities, but unless local bodies become more aggressive in collecting what is due to them, there will always be defaulters.
