Rajasthan property tax urban development ministry's warning to municipal corporation

Urban Development Ministry's warning to bodies: Funds will not be available if property tax is not collected with an increase of four and a half percent

Feb 27, 2023 - 19:01
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Rajasthan property tax urban development ministry's warning to municipal corporation

The Ministry of Urban Development has increased the tension among the bodies regarding the funds (grant amount) received from the Central Finance Commission to the urban bodies of the state. The ministry has warned those bodies, which are not able to recover property tax i.e. Urban Development Tax (UD Tax) in their area. The fund amount received by the bodies that do not recover from the prescribed growth rate will be stopped.
Actually, a letter was written on behalf of the Ministry to the ACS of the Finance Department and the Secretary of the Autonomous Government Department. In this, all the bodies have been asked to give the funds received under the 15th Finance Commission in the year 2023-24 with a growth rate of four and a half percent. But the ministry has also expressed displeasure with those bodies, which are not able to collect UD tax in their area as per the prescribed growth rate (four and a half percent).
The Ministry has issued a list of 19 bodies, showing the recovery rate of 12 of them as negative, warning that if these bodies do not recover UDAX with the increase of the prescribed growth rate, then that body will be declared ineligible to receive funds. Will go He will not get the fund for the next financial year.
The municipalities in the list released by the ministry are Ladnun, Anupgarh, Lalsot, Chhoti Saddi, Raisingh Nagar, Vidyavihar, Didwana, Medtacity, Makrana, Ringas, Sagwara and Pindwara municipalities. These bodies have reduced the collection of UDAX in FY 2021-22 by 2 to 97 percent as compared to FY 2020-21.
The worst condition was of Chhoti Saadi municipality. Here in the financial year 2021-22, the recovery of UDAX was Rs 5 lakh 26,743, which remained only Rs 3,430 in the financial year 2020-21. Similarly, the recovery of UDAX in Makrana Municipality was Rs 4 lakh 30,043 in the financial year 2021-22, which could be Rs 10,195 only in the financial year 2020-21. Even in Medtacity Municipality, the recovery of UDAX in FY 2021-22 was Rs 5 lakh 39,855, which got stuck at Rs 91,754 in FY 2020-21.
Jaipur Municipal Corporation Greater had collected UDAX of 46.30 crores in the last financial year 2021-22, but till now this year i.e. till February 24, only Rs 33.47 crore could be recovered. Similarly, Rs 25.33 crore was recovered in Municipal Corporation Heritage in the last financial year 2021-22, but this time only Rs 18.23 crore has been recovered so far. In such a situation, only one month's time is left with both Municipal Corporations. If both corporations are unable to recover more than what they did in their previous financial year, then both corporations will not get funds from the Finance Commission in the next financial year.

Muskan Kumawat Journalist & Writer