PANAJI: Panaji is all set to become the costliest city in the state with the Corporation of the City of Panaji deciding massive taxation increase pertaining to trade, exhibition/fairs,

advertisements and repair licences for residential as well as commercial units; the hike in taxes ranging between 100 per cent and 5,000 per cent. A notification to this effect will be issued soon.

The decision came at a special budget meeting of the CCP, which witnessed presentation of the Rs 23.92-crore annual financial statement of the municipal body for the year 2011-2012.

The CCP commissioner, Mr Elvis Gomes who presented the annual budget said that this is the last budget of the Corporation presented under Goa Municipality Act, 1968, by way of single entry system, and has Rs 18.49 crore as the total income on revenue account, while Rs 22.74 crore as the total income on capital account. "The budget has started on the opening balance of Rs 5.43 crore," he noted.

Mr Gomes also informed that 58 per cent of the budget will be spent on the salaries, while Rs 6.40 crore would be utilised for city development, and another Rs 2 crore for the beautification of the Garcia da Orta garden near the church square. He also maintained that the steering committee set up in connection with the Jawaharlal Nehru National Urban Renewal Mission has already submitted to the Mission, proposals for city projects worth Rs 11.50 crore, and the related grants are expected this year.

The budget has projected revenue of Rs 6 crore through property tax; Rs 2 crore by way of octroi; Rs 50 lakh each though fairs and exhibitions, trade and occupation, and rates of plots; Rs 35 lakh each from advertisement tax and sopo tax; and Rs 30 lakh through parking fees, among others.

Observing that the revenue of the Corporation needs to be increased substantially, the Corporation councillors decided to ignore the rates related to revision of trade tax as proposed by the CCP commissioner, and hiked the same exorbitantly. This increase in the trade tax is expected to fetch additional revenue of Rs 27 lakh to the Corporation. The last revision of trade and occupation tax was carried out by the municipal body in the year 1989.

The existing annual trade tax for banks and insurance companies has been hiked from Rs 625 and Rs 525 to Rs 10,000 each, respectively, while the 5-star, 3-star and 2-star hotels will have to pay an annual tax of Rs 25,000, Rs 15,000 and Rs 10,000, respectively, instead of the prevailing uniform tax of Rs 500. The annual trade tax on cinema theatres and auditoriums has been hiked from Rs 1,000 to Rs 10,000, while that on the casinos has been increased from Rs 7,150 to Rs 50,000. The annual trade tax on 4-wheeler showrooms has been increased from Rs 625 to Rs 25,000, while that on 2-wheeler showrooms has been raised from Rs 625 to Rs 10,000.

Furthermore, the annual trade tax on hospitals/ maternity nursing homes has gone up from Rs 625 to Rs 2,000, on river cruises from Rs 4,000 to Rs 10,000, and showrooms of branded items from Rs 625 to Rs 5,000. The petrol pumps, open wedding halls and water tankers will have to pay Rs 5,000, Rs 10,000 and Rs 5,000, respectively, towards the annual trade tax.

Incidentally, the ruling councillor, Mr Avinash Bhonsle taking strong objection to the arbitrary increase of rates pertaining to the trade tax, said that anybody can challenge this hike in the court of law as it has been done sans application of mind and without following proper taxation laws.

"The CCP needs to have a sustainable and strong financial footing for hiking these rates," he stated, predicting that the increase in taxes would eventually percolate to common man.

Earlier, in his budget speech, the CCP commissioner said the heritage of Panaji is coming under serious threat, and that there is an urgent need to protect the heritage character of the city. He also observed that around 20,000 to 30,000 vehicles move through the city on daily basis, while there is reluctance on the part of the councillors to impose pay parking scheme along the important city roads.

Speaking further, Mr Gomes said the CCP has to foot the power, water as well as maintenance bills of the new municipal market, and the agreements at the rate of Rs 195 per sq mt of space have been made ready for the occupants of the market. He informed that the beautification of the Garcia da Orta garden is on the track of completion, while the Azad Maidan would be beautified within three month’s time.

Stating that administrative reforms are must for the CCP, Mr Gomes mentioned that investigation is almost completed about the irregularities detected in the accounts section of the Corporation. Maintaining that there exist several irregularities in various big and small city hotels as regards disposal of garbage, the CCP commissioner said that some progress pertaining to the Bainguinim garbage disposal site was possible only due to the intervention of the judiciary. Expressing hope that a single integrated garbage disposal plant would come up at Bainguinim, he suggested setting up of municipal garbage disposal zone centres.

The mayor, Ms Carolina Po in her speech said the CCP will try to execute as many projects as possible, during the forthcoming financial year. "We will also make full-headed efforts to improve the financial position of the Corporation," she stated, while stressing on the need for improvement of the city administration.

Replying to a question as regards the Miramar beach being turned into a dump yard by a city hotel, Ms Po said the CCP officials would be conducting a personal inspection of the particular site, and identifying the garbage. She also maintained that the Corporation would try to improve the services available for city traders.