Rs 83 cr tax arrears cripple Vellore corporation

VELLORE: With Rs 83 crore outstanding amount, Vellore City Corporation ranks 15th among the 26 urban bodies in the state, in terms of arrears to be realised.

“The local body is currently making a concerted effort to collect the dues to overcome the crisis,” said corporation commissioner Janaki Ravindran. “The total tax demand for a financial year including water tax, property tax, professional tax, house tax, shops’ rent and drainage charges amount to Rs 81 crore,” she told DT Next. But arrears of all taxes amount to Rs.83 crore.

“The public seem to be under the erroneous assumption that they can refrain from paying taxes till they are forced to,” a corporation tax official said. Presently a tax collection drive has been started with announcements being made through public address systems in autos, sources revealed. “Both annual tax and arrears amount to Rs 164 crore,” commissioner Janaki said.

The local body has also been hampered by the failure to auction many of its shops in the new bus terminus. “There is no big response as a result of the high rent and advance amount demanded,” a trader unwilling to name himself said.

Officials have started sealing the shops of defaulters resulting in many paying up, albeit unwillingly, sources said. “Orders have been issued to collect arrears from the Corporation’s shops which have to pay rents by the 5th of every month, but it is rarely followed,” the Commissioner said.

Another issue for the Corporation is that auctioned shops in the new bus stand are used as storerooms with the owners encroaching up to the platforms.