Tamil Nadu Urban Infrastructure Financial Services ... - Municipal

Percentage
6.3.3 Professional tax
Exhibit 6.6 provides an analysis of key drivers for professional tax revenue.
Exhibit 6.6 Professional Tax - revenue drivers
Year Collection Efficiency Assesses Growth
Arrears Current Total Numbers
Tax
demand/assessee
rate of
Assesses
Growth
Rate of
Current
Demand
2002-03 45% 90% 69% 0 NA NA NA
2003-04 11% 98% 68% 0 NA NA -3%
2004-05 100% 97% 98% 0 NA NA -1%
2005-06 35% 97% 69% 835 1545 NA 19%
2006-07 18% 86% 67% 862 1962 3% 31%
Source: Krish-M
120%
100%
80%
60%
40%
20%
0%
Profession tax Collection Efficiency
2002-03 2003-04 2004-05 2005-06 2006-07
Arrears Current Average
Exhibit 6.7 Professional Tax – assessee break up (2007-08)
Category Number of
Assessments
% Annual Tax demand
(Rs in Lakh)
State/Central/Quasi Govt. Employees 156 12% 15.03 77%
Traders 1157 88% 4.55 23%
Total 1313 100% 19.58 100%
a) Share of professional tax in total income has increased marginally from 2% to 3% of total
income
b) No. of assessments has increased from 2748 in FY 2003 to 2988
c) Collection efficiency was very low at ~25 % in FY 2007, due to poor arrear collection
efficiency of 6%. Current collections are high at around 93%.
CCP cum BP - Krishnagiri Municipality 39
%