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Coimbatore city corporation is facing difficulties in meeting its property tax collection target of INR 592 crore for the current financial year, having collected only around INR 281 crore so far. The corporation is falling behind other cities like Salem, Tirupur, and Karur, with a growth rate of just 14%, which is below the national average. The poor collection is attributed to residents' delayed payments, lack of awareness about incentives, and technical issues. To improve collections, the corporation is using public announcements, media, and special camps, alongside measures to detect unauthorized constructions.
The Coimbatore City Corporation is facing challenges in meeting its property tax collection target for the current financial year. The civic body had set a target of INR 592 crore, which included INR 123 crore in arrears, but so far, only about INR 281 crore had been collected. Last year, the corporation had managed to collect 92% of its target, but this year, with only two months remaining, achieving the same result seemed difficult. Having reached only 47% of the target so far, the situation remained concerning. Advertisement
A senior corporation official mentioned that cities like Salem, Tirupur, and Karur had seen impressive revenue growth rates of 52%, 24%, and 33%, respectively. However, Coimbatore was lagging behind with just 14%, which was below the national average of 15%.
One of the key factors contributing to the poor tax collection was the sluggishness of residents, including commercial establishments and even individual households. Despite multiple reminders, many residents delayed their tax payments until the last minute, leading to a 1% penalty for late payment. An official explained that many residents were unaware that paying within the first 30 days offered a 5% incentive. This delay often caused technical problems, such as portal errors or server issues, due to the rush.
Although property tax constituted only a small portion of the city's revenue, the outstanding dues still affected the corporation's financial health. An official explained that the tax revenue was vital for completing pending projects and settling payments for contractors working on completed projects.
With just 50 days left in the fiscal year, the corporation had stepped up efforts to increase tax collection. Public announcements, media advertisements, banners, and flex boards were being used to raise awareness. Automated SMS notifications were also being sent to taxpayers. Additionally, special tax collection camps and awareness programmes were being organised, with tax offices now open on Sundays.
Alongside these efforts, the civic body had started identifying unauthorized constructions and buildings that did not comply with approved building plans. These properties would incur penalties and extra tax charges. The corporation was using drone surveys to identify such buildings.
Another source confirmed that tax collectors were inspecting 20-30 buildings daily to ensure tax compliance and spot any illegal constructions. Immediate action was being taken for any violations, and it was expected that collections would rise significantly in the coming weeks.
The Coimbatore city corporation is working hard to meet its property tax target for the current financial year by stepping up collection efforts and taking measures to identify unauthorized buildings. However, the delay in payments by residents and other technical challenges continue to hinder the process. Despite these obstacles, the corporation is optimistic that its increased outreach and awareness campaigns, along with stricter enforcement of building regulations, will lead to an improvement in tax collections in the coming weeks.
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