E-Paper
Lack of coordination between MC departments leading to losses: CAG
According to the CAG report, the audit team has pointed out the absence of proper coordination mechanisms between the property tax and building branch wings of the MC
The lack of coordination between the property tax wing and building branch wing of the municipal corporation has led to substantial revenue losses to the civic body over the past several years, according to a recently released report of the Comptroller and Auditor General (CAG).
The 2021-2022 report has raised objections over this administrative gap.
According to the CAG report, the audit team has pointed out the absence of proper coordination mechanisms between the property tax and building branch wings of the MC.
A key concern highlighted in the report is the absence of a maintained property demand and collection register. Instead, the MC relies on an online list of properties, with the last survey conducted back in 2013-2014, it said.
The audit team also noted a significant discrepancy in the linkage between the E-Naksha system, used for maps and completion certificates, and the property tax portal. The lack of information sharing between these branches is seen as a potential cause for the observed revenue loss.
Officials from the audit team emphasised that the MC depends on the property tax portal, primarily through self-assessment forms, for tax collection.
However, a critical shortcoming identified is the absence of a mechanism to collect property tax on new properties and issue timely intimation for tax deposit. This gap, according to the report, creates an environment where property tax evasion can go undetected, directly impacting MC’s income.
In response to the objections raised, MC officials in the report have indicated that the matter will be escalated to higher authorities. They acknowledge the need for a comprehensive mechanism to bridge the existing gap and ensure effective coordination between the property tax and building branch wings.
