MCG banks on taxes to fill coffers
The Municipal Corporation of Gurgaon (MCG) is all set to rake in the moolah with revenue from tax collection expected to run into several crores.india Updated: Jun 23, 2011 01:50 IST
The Municipal Corporation of Gurgaon (MCG) is all set to rake in the moolah with revenue from tax collection expected to run into several crores.
After a new advertising policy was notified, the civic agency has already got Rs 17 crore in its kitty through the tender. The vendor is authorised to let or sub-let 13 locations earmarked for putting up corporate endorsements and hoardings.
Next in line is property tax which will add nearly Rs 300 crore to the civic body's coffers.
The corporation will earn huge sums from owners of residential and commercial properties such as malls.
“Out of a total 72 prime locations, the agency has only given permission to put up advertisements at 13 spots. Rest of the areas are yet to be 'milked' which will only add to the MCG's revenue. Earlier, the rates were quite insignificant but the new advertisement policy has helped the civic agency earn some extra bucks,” said a senior officer in the MCG who did not wish to be named as he is not authorised to speak to the media.
For putting up of endorsements, the locations are divided into four zones. The most prime location is the MG Road area, followed by National Highway-8. The others are Sohna Road area and Old Gurgaon.
There are around 2,500 commercial establishments in Gurgaon such as malls, shops, pubs, bars and cinema halls. These are expected to fetch Rs 30-40 crore according to a rough estimate.
After collecting revenue from commercial and industrial establishments, the corporation will move further to residential property owners. “The total projected property tax collection for this year would exceed Rs 300 crore, including arrears of previous years,” said a senior official.
Officials, however, add that the major source of revenue remains the 2% stamp duty on transfer of properties in areas falling under the MCG's jurisdiction.
“Every month, the civic agency earns Rs 15-25 crore through stamp duty,” said the official.