Shivamogga : The Shivamogga Municipal Corporation announced a 5% discount for property tax payers for the current financial year, resulting in the collection of Rs 35 crore in April. The corporation has set a target of collecting Rs 55 crore in property tax for the year 2024-25 and has decided to levy a 2% penalty on taxes paid after July.
Corporation Commissioner Mayanna Gowda said that there are 1.70 lakh property tax payers within the municipal jurisdiction. In the first month alone, 65,000 individuals took advantage of the discount and paid their taxes. The municipal corporation oversees an area of approximately 70 square kilometers, which includes more than 1.10 lakh residential, commercial, and vacant plots.
Commissioner Gowda emphasized that the 5% discount in April was a significant incentive for early tax payment, contributing to the Rs 35 crore collected. However, no discounts or penalties are applied to taxes paid in May and June. From July onwards, a penalty of 2% will be imposed on late payments. Gowda highlighted that timely tax payments are crucial for the development of any city, town, or village.
Despite the successful collection, there has been notable opposition to the recent property tax increase. Vasant Kumar, convener of the Anna Hazare Struggle Committee, criticized the Shimoga Municipal Corporation’s claim of progress in tax collection. He argued that the increased revenue is not due to improved collection methods but rather a substantial hike in property taxes, ranging from 30% to 40%. Kumar accused the corporation of exploiting taxpayers under the guise of property tax.
Kumar pointed out that many residents struggle to pay the higher taxes, particularly in a year marked by elections and economic challenges. With no current people’s representatives in the corporation, decisions like the tax increase were made unilaterally by the commissioner, without public consultation. Kumar suggested that the discount period should have been extended by an additional two months to ease the burden on taxpayers.
The tax increase has been implemented based on guideline value assessments, which Kumar argues should be re-evaluated. He called on the government to consider alternative taxation methods that do not disproportionately burden citizens. Kumar urged immediate legislative changes to address the issues arising from the current tax policy.
The Shimoga Municipal Corporation’s efforts to collect property taxes are essential for funding local development projects. However, the significant opposition and calls for policy reform indicate a need for a balanced approach that considers both the financial requirements of the municipality and the economic realities of its residents.
