Demonetisation sets Corporation cash registers ringing

CHENNAI: The Greater Chennai Corporation is all set to resume and speed up important civic projects which were put on hold due to cash crunch. Thanks to the record tax collection the civic body witnessed a post-demonetisation drive through specials camps.

Through nearly 300 tax counters set across the city, the GCC has managed to collect Rs 80 crore as tax since November 11. This is 200 per cent more than Corporation’s monthly tax collection.

Though the local body refrained from collecting various taxes in cash from 2002, the recent Central announcement declaring Rs 500 and Rs 1,000 currency notes as invalid forced the authorities here to organise special camps and accept cash at these tax counters.

Accordingly demonetised currency notes were accepted for tax payments in all zonal and ward offices, Ripon Building (HQ), Tamil Nadu Arasu Cable TV counters and designated branches of 11 different banks including IOB, HDFC and KVB.

These special counters closed on Thursday. “The Corporation received Rs 71 crore as property tax, Rs 8 crore as professional tax and Rs 6 lakh as company tax in these 12 days,” said a senior Corporation official. This was record collection for the local body in the last 50 years, the official added.
Though the collection peaked on day two (Rs 15.53 crore), on an average the civic body received Rs 4-5 crore every day through these taxes.

Largest revenue was recorded at the counter set at Parry’s Corner. Commercial establishments in and around Mount Road, T Nagar and Nungambakkam remained as the major contributors. Officials added that the 42 local bodies (expanded areas) added to Corporation helped in achieving this windfall.
This revenue comes as a breather to the cash-starved local body which had put major civic projects on hold.

The Corporation was awaiting grants worth Rs 300 crore from both the State and the Centre to carry through various projects. Due to the State Assembly elections, there was a delay in payment reaching them and cancellation of local body polls delayed proceedings further.

To execute some of the schemes, the Corporation had taken eight major loans from various financial institutions including World Bank, Tamil Nadu Urban Finance and Infrastructure development Corporation Ltd.

Paying interest to these loans almost crippled the execution of various projects, announced at the earlier council meetings, including construction of new parks, multi-level parking projects and cycle-sharing system. “Now with this tax income, we can speed up ongoing civic development work in core areas,” said another civic official. Re-laying of roads and construction of integrated stormwater drains in extended areas will be of prime focus in the coming weeks.