Kochi Corporation seeks full freedom in charging entertainment tax

Kochi Corporation seeks full control over entertainment tax, demands competent professionals, and urges changes in property tax collection.

The Kochi Corporation has asked the Seventh State Finance Commission (SFC) to give it full control over charging entertainment tax as per its bylaw and to avoid a situation of the State government giving unilateral concessions.

The issue was raised when the SFC chaired by K.N. Harilal met the civic administrators on Thursday (January 23). Mayor M. Anilkumar, Deputy Mayor K.N. Ansiya, UDF councillor Antony Kureethara, and standing committee chairpersons and officials were present.

A demand was placed before SFC for the appointment of competent persons with professional qualifications as project manager, finance officer, legal officer, town planner, and electrical engineer for five years. The introduction of a maintenance grant in place of property exchange tax and vehicle tax compensation has resulted in loss worth crores to the civic body. The Corporation authorities sought the SFCs’ intervention to ensure that the civic body received a reasonable share of the property exchange tax and vehicle tax compensation.

The State government should take necessary legal measures for quick settlement of numerous cases related to building tax pending in the High Court. Permission was sought for setting up special purpose vehicles for waste management, planning, and transportation.

Necessary changes should be introduced in the Kerala Municipal Rules with regard to the collection of property tax in view of the introduction of K-Smart. The Central government, in consultation with the Income Tax department, should effect timely changes in professional tax, which will raise the income of local bodies.

Local bodies should have full freedom in utilising funds under the People’s Plan programme, said Mr. Anilkumar. Mandatory allocations dictated by the State government leave little for local priorities. He added that local bodies must also have complete control over their own revenue.

The present system of sending files regarding projects and estimates to the engineering wings of the Local Self-Government department and the Public Works department in Thiruvananthapuram should be changed. “The issues raised will be presented to the council after which a report supported by evidence will be submitted to the SFC,” said Mr. Anilkumar.