Tax stir may hit council cash flow in Margao

Margao: The Margao Municipal Council (MMC) is facing a severe financial crisis as numerous commercial establishments have taken a firm stance against paying the newly imposed trade taxes, demanding an immediate rollback of the controversial hike. The protest, led by shadow council convener and Margao Congress block representative Savio Coutinho, has gained momentum with traders submitting written declarations refusing to pay the increased fees.

This standoff between traders and the MMC threatens to significantly impact the council’s revenue stream.

The primary contention stems from allegations that the implemented hike violates the council decision taken on Feb 27, which traders say stipulated only a 10-15% increase. “The current implementation far exceeds the agreed-upon rates,” said Coutinho. Video footage of MMC chairperson Damodar Shirodkar’s statements confirming the rise to be 10-15% is being circulated among traders as evidence against the “unauthorised” increase.

The situation has escalated with reports of market inspectors allegedly threatening to seal establishments that fail to comply with the new rates.

“This is nothing but pure extortion,” Coutinho said, while alleging that the council hasn’t shown a similar eagerness in recovering the arrears of the past many years from errant traders.

Snehal Onskar, a lawyer, said another contentious issue is sanitation fees, which were increased from Rs 600 to Rs 900 for residential premises in April 2023, while Panaji residents continue to pay only Rs 600. The protesters have warned of legal action if the “illegal hike” is not withdrawn. They plan to approach the high court to challenge the council’s “illegal acts”.