Tiruchy Corp intensifies crackdown on tax defaulters

TIRUCHY: Intensifying its crackdown on tax defaulters, the city corporation on Friday disconnected the water supply and underground drainage (UGD) connections of 14 commercial establishments that owe at least Rs 50 lakh each to the civic body.

Officials said similar action will be taken against other such tax defaulters in the coming days. Although the civic body’s move last month of putting up notices on commercial establishments categorised as major defaulters yielded some results, some continued to ignore the measures.

This led the corporation to disconnect water supply and underground drainage (UGD) connections of such defaulters who have not paid taxes for years, official sources said. "We have started taking more steps against those ignoring payment of property tax, water tax, UGD charges, etc.

We gave the defaulters ample time to pay but many ignored it. Hence we have commenced disconnection of water supply and UGD connection. We will continue the drive against more defaulters," a senior corporation official said.

Sources pointed out that the drive intensified following a recent meeting the corporation’s top brass held with zonal officials. "We already have a list of major defaulters, especially commercial establishments. Initially, we focused on the major defaulters. For instance, it was the UGD connection of two major shopping complexes that was disconnected on Friday,” an official said.

Of the corporation’s tax revenue target of Rs 298.86 crore for the current financial year, about Rs 139 crore has been collected so far. Of this, property tax accounted for Rs 82 crore and water supply charges, about Rs 23 crore. As several have avoided paying taxes, we are struggling to arrange funds even for undertaking civic works.

Currently, most of the road work is being carried out from the funds allotted by the state government, an official said, adding that residents and commercial establishments need to pay taxes on time. Otherwise, we would struggle to implement several projects, the official said.