Tamil Nadu Urban Infrastructure Financial Services ... - Municipal

6.3 Revenues
Exhibit 6.3 provides the composition of revenue of Krishnagiri Municipality along various heads
between FY 2003 and FY 2006. These are based on information provided by Krishnagiri
Municipality. Aions seen, water charges have doubled as a proportion of total income. While other
income streams have largely maintained their contribution to total income, assigned revenue has
fallen down sharply during this period from 24% of income to 10% of income.
6.3.1 Tax Income
Tax income has grown at a CAGR of merely
0.24% over the last four years with profession
tax growing at CAGR of 11%. Property Tax
has shown negative trend of 1 % during this
period. While the share of property tax in total
income has increased from 29 % to 36 % and the
share of professional tax has increased to 2% in
FY03 from 4% in FY06.
6.3.2 Property Tax
Exhibit 6.3 Analysis of Revenues
Rs. Lakh
Property tax & Profession tax
CCP cum BP - Krishnagiri Municipality 37
160
140
120
100
80
60
40
20
0
2002-03
2003-04
2004-05
2005-06
35%
30%
25%
20%
15%
10%
5%
0%
Property tax Profession tax
Property tax %of Total Income Profession tax % of Total Income
Property tax alone accounted for almost a one fifth of income of Krishnagiri Municipality in FY 2006
and is an important contributor of revenues to Krishnagiri Municipality. Following are the key issues /
observations with respect to property tax. Exhibit 6.4 provides a summary.
percentage