Private schools, tutorial institutions, coaching centers, private hostel, paying guest houses to come under tax net

Private schools, tutorial institutions, coaching centers, private hostel, paying guest houses will come under the tax net if the state government accepts the recommendations of the Sixth Assam State Finance Commission.

In its report, the Commission has recommended that the Assam Municipal Act, 1956 needs to introduce rules for Registration to include private schools, tutorial institutions, coaching centres, private hostels, paying guest houses and such other commercial set up.

The Commission also recommended a news sanitary tax to be levied on on all hotels, restaurants, private hospitals, bus stand stalls, way side eateries , nursing homes, recreation centres, eateries , schools, marriage halls and gardens and shopping complexes, exhibitions , fairs, construction sites due to increase in waste.

The Sixth Assam State Finance Commission came down heavily on the poor service delivery of Urban Local Bodies in both general areas and the Sixth Schedule areas which according to it is in a dismal state.

There is a sizeable amount of arrears in property tax collection.

All ULBs including the Guwahati Municipal Corporation (GMC) have not been making adequate efforts to gear up collection of property tax which is the single largest source of revenue for ULBs, the report pointed out.

It is advised that the ULBs should make all out efforts to collect property tax and mop up all existing arrears, the report said.

The Commission further said that the fiscal handicaps of municipalities arise mainly from poor economic base and limited productivity of local taxes. The elected representatives as well as functionaries of ULBs have shown reluctance in realizing taxes. This coupled with the lack of control over expenditure and administrative deficiencies have resulted in the poor financial condition of the ULBs.

The Commission further said many of the ULBs have not effected revision of property valuation since decades. Some of them have not even updated or maintained the holding register.

This has naturally attributed to low level of property tax collection. In this context, the Commission recommends that an independent valuation committee must be constituted along the lines of those in West Bengal and Tamil Nadu. The Municipal Act too should have enabling provisions and provide for periodic revision of taxes.

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