Shimla, November 19: Shimla Municipal Corporation has tightened its grip on tax defaulters and has started action to recover the outstanding property tax of Rs 6.33 crore from ISBT Tutikandi. ISBT management did not pay its outstanding tax despite several notices sent by the Municipal Corporation, due to which the Municipal Corporation has now ordered the Electricity Board to cut off the electricity connection of ISBT. After this order, the Electricity Board has started the process of cutting the connection.
Electricity Board issued a seven-day notice
According to the Electricity Board, before cutting the connection, it is necessary to give a seven-day notice to the consumer to clarify the situation. If a satisfactory reason is not found in response to this notice, then action is taken to cut the connection.
Municipal Corporation withdraws ISBT’s NoC
Electricity and water connection in Shimla city is issued only after taking NOC from the Municipal Corporation. Now the Municipal Corporation has withdrawn the NOC of ISBT located at Tutikandi and has issued an order to cut their electricity and water connections. 42 shops, cinema hall, private hospital, parking and HRTC bus stand are operating in ISBT and all these businessmen are worried due to this order. Businessmen say that if electricity and water connections are cut, then their work may get affected.
Property tax is the biggest income source for Municipal Corporation
Property tax is the biggest income source for Municipal Corporation Shimla, but the Municipal Corporation has not been able to collect this tax for many years. According to the Municipal Corporation officials, there are about 500 tax defaulters in Shimla city, from whom outstanding tax of crores of rupees is to be recovered. The Municipal Corporation sent many notices to these defaulters, but most of them did not pay the tax.
Penalty and action to cut connection
Now the Municipal Corporation has also imposed a five percent penalty on these defaulters, which will increase with time. The Municipal Corporation is soon going to start the process of cutting the water, electricity and sewerage connections of these defaulters. This step has been taken by the Municipal Corporation with the aim of speeding up tax recovery and putting pressure on the defaulters.
Crisis on the income of the corporation
Most of the income of Shimla Municipal Corporation comes from property tax and this laxity in tax recovery has affected the financial condition of the corporation. Strict action is being taken continuously by the Municipal Corporation so that the outstanding tax can be recovered on time and the financial condition of the Municipal Corporation can be strengthened.
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