Corporation tax plan may come a cropper

The decision by the state government to reconsider the revision of property tax is likely to hit the Corporation’s plan to garner Rs 100 crore this fiscal as tax revenue. At present, the Corporation gets Rs 50 crore to Rs 60 crore by way of property tax annually.

As per the instructions given by the Local Self Government Department (LSGD), the Corporation had recently revised the property tax rates on the basis of floor area ratio.

Accordingly, the revenue officials have initiated the numbering of buildings and distribution of self assessment tax forms. The self-assessment of property tax is a process in which a taxpayer will be issued a form in which all taxable income on his or her property is written, including the tax they owe which is to be returned usually with the payment as well).

But the government authorities, the other day, have decided to temporarily hold its decision to revise the tax rates. A crucial meeting will be held on the Ernakulam district administration headquarters next week to take a final stand on the tax revision. It is learnt that the government’s decision to  reconsider tax revision is based on the strong protests raised by commercial establishments.

Meanwhile, an official with the Corporation said the civic body would go ahead with the numbering process. “We will continue distributing numbers. The self assessment form will also be given to the owners. However, the notification on the date to file back the filled assessment forms will be decided later,” the official said.

He said the date for filing back the applications and minimum and maximum tax rates will be finalised after the government takes a final stand on the revision. The Corporation will focus on buildings that were assessed as residential ones for taxation purposes earlier and later converted into commercial establishments.

However, the official said the Corporation’s plan to achieve the set target of `100 crore is likely to be affected if the government decides not to go for a considerable revision of tax rates.