RANCHI: To bolster municipal finances and improve civic amenities, the Principal Secretary of the Urban Development and Housing Department, Sunil Kumar, directed officials to expedite the recovery of more than Rs 200 crore in outstanding holding taxes owed by various central institutions such as CCL, BCCL, Post Office, SAIL, and Railways, along with other govt departments situated in urban areas.
During a review meeting focused on revenue collection from urban bodies, Kumar emphasised the urgency of formulating a detailed plan to promptly recover the dues. In the review meeting, senior officials from the Urban Development Department and experts in tax management addressed key strategies to boost the revenue generation of municipal bodies on Wednesday.
Kumar underlined the importance of leveraging available provisions under the Jharkhand Municipality Act to identify additional revenue streams, fostering financial autonomy for municipal bodies.
"The revenue generated from these resources should be reinvested into improving urban infrastructure and enhancing the living standards of our citizens," Kumar stated. He particularly highlighted the pressing need to address the long-standing challenge of recovering outstanding holding taxes.
Concern was also raised regarding the non-recovery of pending taxes from state govt offices and institutions. Kumar stated, "Buildings from various state departments, previously exempt from holding tax payments, should now contribute by coordinating budgetary provisions with the Finance Department."
In addition, Kumar pointed out that industrial establishments in the Jharkhand Industrial Area Development Authority (JIADA) region have been neglecting their tax obligations. Kumar instructed immediate action to initiate tax collection processes from these establishments, referencing a directive from the Jharkhand High Court that mandates holding tax payments by industrial entities, with the exception of Jamshedpur.
Experts at the meeting praised recent property tax reforms that led to a rise in collections, with figures showing an increase from Rs 147 crore in 2020-21 to Rs 220 crore in 2023-24.
Another significant issue raised was the poor maintenance of commercial building details within municipal areas, which hindered rent determination and recovery efforts. To address this, Kumar announced the launch of a digitisation initiative aimed at cataloguing municipal assets.