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Trichy Corporation has collected INR 111 crore in property tax for FY 2024-25, marking a significant improvement from previous years. A survey of 5,400 properties added INR 10 crore in revenue by correcting tax assessment errors. With the Central Finance Commission's new funding formula linking allocations to tax collection, officials have intensified efforts, achieving 60% of the INR 188.1 crore target by January 30. While solid waste charges reached 60% collection, water charges lag at 34%. The corporation plans a special drive to boost water bill payments, aiming for financial stability and improved civic services before the fiscal year ends.
As the 2024-25 financial year approaches its conclusion, Trichy Corporation has reported a significant increase in property tax collection, reaching INR 111 crore. This improvement is notable compared to the previous two years, where collection rates were lower. The local body has also conducted a survey of over 5,400 properties, adding INR 10 crore to its revenue by correcting tax assessment errors. Advertisement
In recent changes, the Central Finance Commission (CFC) has implemented a new formula for allocating funds to urban local bodies, which has directly impacted Trichy Corporation. Approximately 23% of its revenue now comes from CFC funds, with the remaining income generated through local taxes and subsidies. The CFC?s new guidelines emphasize the importance of property tax collection, prompting Trichy officials to enhance their efforts in this area. As of January 30, the corporation has collected around 60% of its total property tax demand of INR 188.1 crore, compared to about 55% during the same period in previous years.
One of the key strategies employed by the Trichy Corporation has been the identification and correction of under-assessed properties. Many residential properties that were being used for commercial purposes were paying lower taxes. By analyzing data from the Tamil Nadu Generation and Distribution Corporation (Tangedco) regarding commercial electricity connections, officials were able to pinpoint discrepancies and address revenue losses. This proactive approach has led to an increase in property tax demands, which have risen from INR 110 crore in 2022-23 to INR 137 crore for the upcoming financial year.
Despite the success in property tax collection, challenges remain in other areas of revenue generation. The corporation has set a target of collecting 85-90% of property taxes by the end of March. Additionally, the collection of solid waste management user charges (SUC) has reached around 60% of the total demand, with INR 7.7 crore collected out of INR 13.2 crore. However, water charge collections have lagged, with only INR 18.8 crore collected out of a total demand of INR 54.3 crore, translating to about 34%.
To address this shortfall, the Trichy Corporation plans to launch a special campaign aimed at improving water charge collections. This initiative will involve mobilizing all bill collectors to enhance outreach and ensure timely payments from residents. The focus on increasing revenue through various channels reflects the corporation?s commitment to financial sustainability and effective service delivery to its residents.
As Trichy Corporation continues to adapt to new funding formulas and enhance its revenue collection strategies, it sets a precedent for other urban local bodies in the region. The ongoing efforts highlight the importance of accurate property assessments and proactive tax collection in maintaining the financial health of local governments.
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