TRICHY: Even though the corporation council election is to be held after a decade, there is no discussion on the necessity to improve Trichy corporation's faltering revenue to fund new projects and maintain existing infrastructure. Fixing revenue loss will be a major concern for the elected council of the local body for which about 32% of revenue comes from grants and only 21% from property tax.
The corporation's annual income from tax stands at Rs 372 crore, but it hardly manages to collect beyond 70% of it from 2.29 lakh properties. The corporation has rented 2,399 of its properties to government and private establishments from which the actual annual revenue is Rs 6.7 crore.
But, tenants who delay payment for months and years owe about Rs 40 crores. In April 2021, the corporation had sealed Murugan Theatre on East Boulevard road for non-payment of Rs 3 crore tax dues. Many were unaware that such high dues were pending. Ten months have passed, but the property remains closed due to pending litigation and there are many such instances.
Similarly, the shops of Trichy corporation near bus stands and railway stations have had numerous defaulters for years. "Rent for corporation's properties was very low than the standard rent at commercial streets. The civic body must revise it and ensure collection," V Prasanna Venkatesh, a resident of West Adayavalanjan street, said.
Earlier, Trichy corporation used to list the top 100 property and water tax defaulters on its website to make them pay, but it was abandoned in 2019. It is pointed out that if the civic body properly monetizes its assets at prime localities, it could generate ample revenue. Months have passed since the corporation completed a commercial complex on Thillai Nagar, but the facility is yet to be rented out. The civic body is reluctant to go beyond construction of commercial complexes in the revenue generation model too. While local body officials pitch for increasing property tax, some candidates are against it. "Hiking tax is not a solution, collecting the tax dues is enough. New amenities with entry fees will help in revenue generation. We will work on it to collect the pending tax," J Srinivasan, former deputy mayor and AIADMK candidate for ward 34, told TOI.
