VASCO
After recently revealing that construction license fees of Rs 20 crore were due to the Mormugao Municipal Council from the four-lane flyover project, public-spirited citizens have now claimed that consolidated property tax payable by lessees/tenants of Mormugao Port Trust to MMC could be well around Rs 25 crore.
The group on Friday submitted a representation to MMC Chief Officer Agnelo Fernandes and requested the MMC to initiate steps to assess and recover the consolidated property tax due from all tenants/concessionaires of MPT.
Speaking to reporters, environmental activist Adv Savio Correia said the data was based on audited financial reports of MPT in the last five years from 2012-2013 to 2016-2017, coupled with RTI information from some members.
“We have tried to draw attention to the possibility of crores of rupees of consolidated property tax payable to the council by lessees, tenants, concessionaires of MPT that may have escaped MMC assessment.”
“Information obtained by one of our members under RTI Act revealed that MPT paid the MMC around Rs 85 lakh as consolidated property tax in the last five years, which shows that lands and buildings of MPT are admittedly not exempted from consolidated property tax under the Goa Municipalities Act.”
“However, our inquiries led us to believe that consolidated property tax payable on land and buildings on Berths 1, 5A 6A and 7 may have escaped assessment,” said Correia.
He claimed that tracts of land within the port’s operational area have been leased to some private operators on 25-30 year lease basis.
“These lands have been built upon by their respective tenants and concessionaires. The aggregate amount of the income of MPT over the last five years works out to Rs 257.05 crore. Applying the statutory provisions under the Goa Municipalities Act, we estimate that the tax of last five financial years due would be to the tune of Rs 23.13 crore plus penal interest,” said Correia.
Another member Peter Andrade added that MPT had leased more lands to several other parties.
“We feel that the assessment should cover all lands and buildings leased by the MPT to private parties. The MMC is facing grave financial crises and several much-needed development works are stalled for this reason.”
“Property tax is the main component of the council’s tax revenue and if MPT’s lessees and tenants are brought into the tax net and the amounts recovered, MMC would be in a position to give tax and non-tax reliefs to Vascokars in its future budgets.”
“While the common man dutifully and honestly pays his civic dues, it would be unfair for wealthy corporates to get away with escaping tax assessments,” said Andrade.
