Residents oppose Berhampur Municipal Corporation move to hike holding tax

BERHAMPUR: The decision of Berhampur Municipal Corporation (BeMC) to increase holding and property tax in Silk City has not gone down well with the locals. While at present, house owners in the city are required to pay holding tax of `100-`200 per year, shopping malls, marriage mandaps and cinema halls pay much higher. The civic body has also enhanced several other taxes and is now focused on recovery of dues especially from Government offices. 

BeMC earns `4.5-`5 crore annually as holding tax which is set to go up as more houses and offices are being built in the city. As per sources, holding tax for households in the city has been increased up to five times. Locals said the decision to enhance taxes was taken in haste without taking into consideration the problems faced by people due to the pandemic. 

Several outfits and political parties termed the move as arbitrary and urged the State government to not collect the enhanced taxes till livelihood of people, hit by the Covid-19 pandemic, is normalised. Chairman of Ganjam Bar Association Bhagaban Sahu sought the intervention of the government in the matter. Similarly, Congress leader Pitabasa Panda and BJP’s Kanhu Charan Pati said the enhancement of taxes comes as a huge blow to people at a time when they require Government assistance to sustain themselves.

The civic body has not only enhanced the holding tax but also reduced the rebate for paying it on time from 10 per cent to 5 per cent. While holding tax is collected in April, this year the date has been extended till October 31. Sources said holding tax of around `4 crore has not been paid by individuals and firms for the last several years. It is alleged that the defaulters will refrain from paying the tax at the enhanced rate and this will only add to BeMC’s financial burden. 

Though the tenure of elected representatives of BeMC ended on September 2018 and no elections have been held for various posts including the Mayor since then. Ganjam Collector has been assigned the additional responsibility of the civic body’s administrator.  However, justifying the move, BeMC officials said holding tax was last revised in the early 1960s and no change in the rate had been effected for around 60 years.