Room for improvement in local body tax collection: Officials

AURANGABAD: Even as the Aurangabad Municipal Corporation recently posted a collection of Rs 48 crore in the first quarter of the current financial year on account of local body tax (LBT), nearly one fourth of its annual target, some of the top civic body officials have said that there is still room for improvement.
Narayan Kuche, standing committee chairman, said on Friday that the city has the potential to generate LBT to the tune of Rs 240 crore-Rs 250 crore per annum."However, to make it a reality, we need to increase manpower and bring in new technology. There is an urgent need of new software that can speed up the assessment process and make the system efficient," he said.
Moreshwar Thatte, the AMC's chief auditor, said the LBT department has not assessed the returns filed by the traders since the new system came into being. "In such a scenario, how can one say that whatever information the traders have furnished is true? There should be a regular check on the returns," he said. Thatte said the LBT department lacked expertise in the field. He added that the civic body could add about 20-25% more in the collection figures of LBT if it improves in certain areas.
Although the general body has set a target of Rs 250 crore for LBT collection in 2013-14, the civic administration is working on achieving Rs 200 crore. Suresh Petgaonkar, deputy municipal commissioner, said on Thursday that the civic body reached close to achieving one fourth of its annual target in the first quarter. "Based on these figures, it seems that we can easily collect Rs 200 crore in the current year," he said. However, Petgaonkar refused to accept that the LBT collection figures were discouraging.
The LBT came into force in Aurangabad on July 1, 2011. The civic body recorded a collection of Rs 161.43 crore (octroi collection in the first four months and LBT in the remaining fiscal) in 2011-12 while it collected Rs 179.70 crore on account of LBT alone in 2012-13.
"On a yearly basis, there should have been a hike of 20-25% considering the growth in city's trade and industry. Many sectors in and around the city recorded phenomenal hike, which must reflect in LBT collection figures," he said.
But Petgaonkar said that during the last 2-3 months, the traders have been protesting against the system which has created confusion among the local tax payers thereby squeezing LBT in Aurangabad. "Let the ongoing tussle between the government and the traders settle down and let the policy makers come out with a clear picture," he said. Besides, the effect of recent drought was also visible on trade and industry, he added.
Petgaonkar said the three components of LBT - rahadari fee (transit fee), stamp duty and tax on entry of goods - were witnessing sluggish movement in the current season. "In 2011-12, the total rahadari fees stood at Rs 11.46 crore which increased to Rs 16.62 crore in 2012-13. But in the first quarter of 2013-14, it came down to only 3.75 crore," he added.