Coimbatore Corporation increases non tax revenue
Coimbatore- This year Coimbatore Corporation will exceed the budget estimates which will increase its profits. This surplus is on account of better inflow of revenue under the ‘non-tax’ category.
The revenue earned by the government is majorly categorized in two parts.- Tax revenue and non-tax revenue. The tax revenue includes revenue generated from property tax, water charges, etc and is utilized by the government to provide public services and also supports itself.
While non tax revenue is not generated from tax rather includes rent and income from annual lease items such as public convenience facilities, bus stands and parking lots.
To state an example, Coimbatore Corporation receives rent from 3ooo shops across Coimbatore. The rent is fixed for three years and is renewed two times with increase of 15 percent. In the last year, i.e in ninth year, the corporation revise the rent according to market rate with approval of the council.
This process was not followed in past for those shops whose rents were fixed nine years ago. But now after implementation of this process, growth of rent increased more than 150 per cent in many cases. As a result the income of Corporation increased from Rs. 4.54 crore to Rs. 10.50 crore.
The civic body has already revised the rent for 2,300 shops and is planning the same for the rest until the nine-year-period expires which will add Rs 14 crore to the non tax revenue.
The civic body is now also planning to construct a shopping complex on Krishnasamy Road (Ward 25) and near the Masakalipalayam Main Road (Ward 57) to increase its revenue.
This boost in revenue will help corporation to take more staff and development works. The civic body has already sent a list of vacancies and posts to be created to the government.
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