MANGALORE: The Mangalore City Corporation (MCC), which resumed collection of house tax after a gap of two years, has raised Rs. 26 crores for 2004-05. Though the threat of the self-assessment scheme (SAS) for payment of property tax looms large, the corporation continues to collect house tax in the annual mode.

The corporation was in a dilemma over SAS for the past three years. During the first year when the tax scheme was introduced, the Government allowed the corporation to collect house tax under the old system.

But the past two years have been very bad for the corporation as it has been forced to suspend tax collection and put up with the subsequent denial of a matching grant from the Government.

The Chairman of the corporation's finance committee, Naveen D'Souza, said a delegation comprising the Mayor, Purandaradasa Kulur; the Karnataka Cashew Development Corporation Chairman, Kallige Tharanath Shetty; and the Chief Whip of the ruling party in the corporation, Mahabala Marla, had met the Karnataka Pradesh Congress Committee President, B. Janardhana Poojary, and impressed on him the dilemma faced by the corporation in implementing SAS.

Chief Minister apprised

Mr. Poojary later spoke to the Chief Minister, N. Dharam Singh, and the Minister for Municipal Administration, S.R. Morey, sometime ago in Bangalore.

Mr. Singh and Mr. Morey assured the delegation that the corporation will be allowed to collect house tax in the old form and there will be no pressure on the corporation to implement SAS for now, Mr. D'Souza adds.

Mr. Kulur told The Hindu that in 2004, the corporation lost Rs. 26 crores by way of revenue as it did not collect house tax. Hence, it also lost a matching grant from the Government. Owing to this, the city plunged into a serious crisis as no development work could be taken up, he said.

Mr. D'Souza said the corporation has decided to allow people to pay the first and second half yearly tax in instalments while the tax for the last year can be paid in full, which will not be more than the tax that they paid before 2002.

Background

It may be recalled that the Congress won the elections to the MCC council in 2002 on the promise that it will allow the implementation of SAS. But as the State Government pressed the corporation to implement SAS from 2001, the council appealed to the then Urban Development Minister, D.K. Shivakumar, who allowed the corporation to continue with the old tax scheme for that year. But the next year, he insisted that the corporation implement SAS.

What transpired between the State Government and the corporation from 2002 to the recent meeting of the delegation with Mr. Dharam Singh and Mr. Morey was a long drawn battle of wits.

On two occasions, the council rejected the Government Order on implementing SAS, and the ruling Congress and the Opposition BJP resolved not to implement the tax scheme in Mangalore.

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