Of the estimated income from property tax recovery at Rs629 crore in the budget for financial year 2010-11, the civic body was able to recover only 50% or only Rs331 crore of estimated property tax, in the first nine months of the same period.
The Ahmedabad Municipal Corporation fears it may have to face a liquidity crunch owing to poor property tax recovery together with non-receipt of additional grant in lieu of octroi.
Of the estimated income from property tax recovery at Rs629 crore in the budget for financial year 2010-11, the civic body was able to recover only 50% or only Rs331 crore of estimated property tax, in the first nine months of the same period.
The civic body has launched 50% interest rebate scheme on payment of due property tax time and again during the financial year. However, it has not proved lucrative enough for the defaulters.
Moreover, the civic body's sealing drive also proved to be an impediment in achieving the desired target.
Moreover, the civic body is also not getting increment of 15% in the state government's grant in lieu of octroi. The civic body had estimated Rs1017.75 crore as income from grant in financial year 2009-10 budget but received only around Rs815 crore. In 2010-11 budget too the civic body has expected grant of Rs1119.52 crore for the same. However, it is not likely to get more than what it received in the last financial year.
The leader of opposition in AMC Badruddin Shaikh demanded that the civic body should declare 100% interest rebate for all. "Such schemes have become successful in past and it is likely to get more tax if AMC extends it for further two months," he said.
The sources in the account department said that next three months of the financial year are likely to be crucial and civic body may feel financial crunch. It will not impact the big projects as they are receiving grants from the central and state governments.
However, small works related to basic amenities are likely to be affected, said sources. However, deputy municipal commissioner of finance Utpal Padia s
aid that civic body will not be much affected as it is getting additional funds in forms of Golden Jubilee Celebration fund along with Chief Minister Fund.
"The income from professional tax is expected to be around Rs70 crore, which will help us," he said.
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