Entrepreneurs default on tax worth crores to Hubballi - Dharwad Corporation

Hubballi: The Hubli Dharwad Mahanagara Corporation is grappling with a significant challenge in tax collection, with commercial entrepreneurs in the twin cities accumulating arrears amounting to crores of rupees.

Despite implementing rules and initiating tax collection efforts, the corporation faces difficulty in achieving full compliance.

The Corporation has undertaken various campaigns and offered discounts to encourage debt collection, with citizens dutifully paying nominal taxes of one hundred and two hundred rupees. However, the same cannot be said for many businessmen, who have amassed outstanding tax dues in crores of rupees, severely impacting the corporation’s financial health.

The outstanding tax arrears of businessmen with amounts ranging from Rs one crore to five crores total approximately Rs 45 crore, forming a significant portion of the corporation’s tax collection target of Rs 120 crore.

Dr. Ishwara Ullagaddi, the Commissioner of Hubli Dharwad Mahanagara Corporation, stated that despite providing various facilities and tax exemptions, crores of rupees in tax arrears remain unpaid. He noted that revenue officers in respective zones are issuing notices, and while some individuals are complying, the corporation is prepared to take strict action against those who violate the law. The Commissioner emphasized that properties of non-compliant individuals will be seized.

The corporation had implemented a 5 per cent increase in property tax from April 1, 2023 (for the year 2023-24) based on the prevailing rates in 2022-23. This additional 5 per cent increase was to be paid with property tax payments for 2024-25. The State Government’s notification empowered the Corporation to raise the rate by 3 to 5 percent annually. In the year 2022-23, a 3 per cent increase was implemented, and a proposal for a 5 per cent increase in property tax for residential, commercial, non-residential, non-commercial, and vacant plots for the year 2023-24 had been prepared by the Corporation.