Post News Network
Bhubaneswar, April 9: Bhubaneswar Municipal Corporation (BMC) seems to have adopted a soft approach when it comes to major government establishments evading holding tax arrears to the tune of Rs 15.88 crore.
However, BMC has for the first time collected holding taxes worth Rs 25.36 crore, a growth of around Rs 5.30 crore compared to last fiscal.
Sources said as many as 36 state and central government-owned establishments owe holding taxes of around Rs 16 crore to the civic body. However, no action has been taken against such buildings as the corporation lacks legal powers to turn the heat on defaulters.
The government-run institutes are: Orissa State Road Transport Corporation (OSRTC), Kendriya Vidyalaya, Women’s Polytechnic, Orissa University of Agriculture and Technology (OUAT), Utkal University, English Language Teaching Institute, Biju Patnaik College, Accounts General (Orissa), general administration department, directorate of estate (Nautala), cooperative tribunal at Kharvel Nagar, Roads and Buildings department, East Coast Railway (ECoR), Commissionerate Police, assistant director fisheries, Food Corporation of India, Doordarshan Training Centre and Central Electricity Supply Utility (CESU) among others.
However, a few of the said institutes have cleared their last fiscal’s (2014-15) holding taxes but are yet to pay their pending arrears to BMC.
A senior official said talks are on with some of the government-run establishments to make them pay the holding taxes as the cash-strapped BMC is facing trouble executing key projects.
BMC’s taxation, finance and accounts standing panel chairman Sheikh Nizamuddin said had the government-owned buildings cleared their pending dues, BMC would have collected holding taxes to the tune of `40 crore.
“Unfortunately, many government buildings, healthcare and educational institutions are still evading their taxes,” he said.
Nizamuddin further said names of at least 200 major private-owned establishments would be displayed on hoardings across the city in a bid to shame them into paying up. Meanwhile, a corporator requesting anonymity claimed BMC is under tremendous pressure from political lobbies not to ‘force’ private entities to clear their tax arrears. A few weeks back municipal commissioner Krishan Kumar told mediapersons that tax evaders would not be spared.