Tamil Nadu Urban Infrastructure Financial Services ... - Municipal

Collection efficiency at 66% is a serious cause for concern. Also, the collection efficiency has not
improved over the last 5 year period. The collection efficiency is low across residential,
commercial and state government categories.
Overall Average tax per Assessment shows (ATPA) for 2007-08 was Rs.741 marginally lesser
than the average Rs. 837 for last five years. Residential ATPA was Rs.690 and Commercial
ATPA was Rs.696. Industrial ATPA was Rs.767 and State government ATPA was Rs.6808.
6.6.2 Profession tax
Category of Professional
State / Central / / Quasi/
Government Employees
Exhibit 6.15Profession tax analysis per capita
No of
Assts
% Demand % ATPA* Collection
Effy
156 12% 15.03 77% 9,635 100%
Traders 1157 88% 4.55 23% 393 61%
Industrial / Private Exmployees
0%
0%
Other if any -
-
Total 1,313 100% 19.58 100% 1,491 91%
Average for 5 years 1,746
12.54
Increase Over Previous Year 404 44% 0.39 2%
Litigation
Growth in 5 years - Current
Source: Krish-M and ImaCS analysis
718 94%
Exhibit 6.15 provides a summary of the Current Collection Efficiency of Krishnagiri Municipality.
This summary has been prepared based on information provided by Krishnagiri Municipality covering
break up for category of professonal tax. Following are our observations:
The municipality has seen a CAGR of 11% in demand respectively. Demand is growing at a
lower pace and that needs to be reviewed.
Collection efficiency at 91% is healthy. But, the collection efficiency among traders is low.
Average tax per Assessment is Rs. 1491 higher than the average Rs. 718 in the last 5 years. ATPA
for State/Central government employees was Rs.9635, Traders was Rs.393 and industrial/ private
employees was nil. The number of assessments is recorded at an organization level and not at the
level of individual professionals paying taxes. This constrains us from making a meaningful
comparison of ATPA across categories and across years. The municipality needs to make a
change to reflect assessments at the level of individual paying professional tax.
CCP cum BP - Krishnagiri Municipality 45
11%
10%