Coimbatore Civic Body Faces Property Tax Collection Shortfall

24 Jan 2025 CW Team

The Coimbatore City Corporation is struggling to meet its property tax collection target for the current financial year. Despite setting a target of Rs 5.92 billion, which includes Rs 1.23 billion in arrears, the civic body has only collected around Rs 2.81 billion so far.

Last year, the corporation achieved 92% of its property tax collection goal. However, with just 47% of this year’s target collected and only two months remaining, matching last year’s performance appears challenging.

According to a senior official, Coimbatore's revenue growth rate of 14% lags behind cities like Salem (52%), Tirupur (24%), and Karur (33%), and even falls below the national average of 15%. The poor collection rate is partly attributed to residents’ reluctance to pay on time. Many defer their payments until the year-end, incurring a 1% interest penalty, while missing the 5% incentive for payments made within 30 days. This last-minute rush often causes technical glitches, such as portal errors or server slowdowns.

Property tax revenue, though a small portion of the corporation’s funding, plays a crucial role in completing pending projects and paying contractors. To address the shortfall, the civic body has ramped up efforts through public announcements, media advertisements, banners, and automated SMS reminders. Awareness drives and special tax collection camps are also being organised, with collection offices remaining open on Sundays.

Additionally, the corporation is targeting unauthorised constructions and building violations. Drone surveys are being conducted to identify such structures, which will be penalised and subjected to additional tax. These intensified measures aim to boost collections in the final weeks of the fiscal year.

(ET)

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