City corp fails to collect 8 crore tax due to inaction

Thiruvananthapuram: Around 55% of corporation’s total tax dues; which comes to around Rs 15 crore, was lapsed due to inaction on the part of the authorities, according to the latest local fund audit report for 2022-23. The audit has found that the corporation’s total outstanding dues from mobile towers, unauthorised buildings and buildings under different categories stood at Rs 14.8 crore in 2022-23. Of this, Rs 8.26 crore lapsed as per section 539 of Kerala Municipality Act, which forbids the civic body to recover tax dues after the expiration of a period of three years. The Act says that no distraint shall be made, no suit shall be instituted and no prosecution shall be commenced in respect of any sum due to a Municipality after the expiration of a period of three years from the date on which distraint might first have been made, suit might first have been instituted, or prosecution might first have been commenced in respect of such sum.If the amount due to the civic body could not be recovered due to the default of not taking steps at the appropriate time and and it is found in a lawful inquiry that it was lost due to the default of any officer or officers, the amount so lost to the Municipality shall be realized with 12% interest thereon from such officer or officers. The civic body has seldom gone for such penal measures or a lawful inquiry in case of default of tax dues.In 2023, the city corporation sought the intervention of district administration to initiate revenue recovery procedures against property tax defaulters with dues above Rs 1 lakh in the city and notices were served on 26 defaulters.The revenue wing of the city corporation had communicated that around 760 individuals/institutions owe city corporation tax dues above Rs 1 lakh each. Even after serving demand notices, the response was indifferent following which corporation sought the intervention of the district administration.The civic body is making revenue recovery requests online and once attachment notice is served on properties of the individuals, no transactions can be done. The revenue wing has also reported that some of the defaulters have moved legally regarding tax dues and until the cases are settled, the amount cannot be recovered.Some of the long-term defaulters among individuals and institutions had come to light in 2021 after the city corporation had started to publish updated tax data in each ward. Five years ago, the revenue wing had initiated a campaign to pick tax defaulters among private educational institutions in the city. Twelve prominent city schools then owed city corporation tax dues to the tune of Rs 4 crore, according to a report prepared by the corporation’s revenue wing.Check out the Valentine Day 2025 , along with the Valentine’s Day Wishes and Messages.