THIRUVANANTHAPURAM: The city corporation has been minting money in huge numbers from professional
tax collection for the past three months and it has resulted in collection close to the biggest source of income; property tax.
The civic body broadened the collection of professional
tax and covered hospitals, shopping establishments, retail chains and traders and as per latest records the collection has touched Rs 42 crore.
With more areas being brought under
professional tax collection, the civic body was able to raise collection by Rs 6 crore. In the past few fiscals, the collection of professional tax had ranged between Rs 30-36 crore.
The revenue officials said that some of the major shopping establishments in the city limits paid professional tax to the tune of Rs 15-35 lakh in one day.
“Until now a large section of staff employed in retail chains and shopping establishments seldom paid professional tax. This time notice was issued to all staff and we could collect humungous amounts in a single day. In some hospitals, we found that professional tax was not being paid for doctors who turned up for brief periods of consultation,” said a senior revenue official.
Deputy mayor
Rakhi Ravikumar said that with collection of professional tax from hospitals and other areas, it has emerged as the second biggest source of revenue for corporation in addition to property tax. “The intense collection drive of professional tax has helped us make up for the loss suffered following cancellation of entertainment tax,” said Rakhi Ravikumar.
The special drive conducted at Technopark alone fetched corporation Rs 1.25 crore. In December 2017, the revenue wing of city corporation began collection of data on payment of professional tax from companies based in Technopark as part of a special drive to streamline collection of professional tax from IT companies. An audit report had prompted the move which cited that corporation had failed in ensuring prompt collection of professional tax resulting in loss of income.
Three sections of Municipality Act empower the corporation to demand professional tax from Technopark employees. According to section 253, the corporation can direct the heads of companies to produce a list of their employees from whom tax can be collected. Section 254 directs the corporation secretary to serve a notice to the heads to assess the tax of employees and make them pay it. The civic body is also supposed to keep a demand register for professional tax as per section 257.
The maximum amount that can be collected as half-yearly professional tax is Rs 1,250. The professional tax is levied based on eight slabs on the basis of half-yearly income.
The tax rates range from Rs 120 to Rs 1,250 and income slabs are placed between Rs 12,000 and Rs17,999 and above Rs 1,25,000.
