Arani Town - Municipal

Chapter - 9 Final Report: Arani Municipality
The current collection performance of property tax is good at around 65% and the
arrears collection performance is around 30%.
9.3.2 Profession Tax
Profession Tax is another source of revenue to ULB. Profession tax is a tax deducted
from the salaries of the employees falling with in the Municipality and is collected
from all registered organizations, companies or firms, public or private, individuals
and State & Central Government Departments. Currently profession tax is deducted
on a slab basis.
The total number of profession tax assessments is 2380 Nos., out of which state /
central / quasi Govt. employees comprise 1150 Nos., private employers / companies
is Nil and traders / self employed professionals 1230 Nos.
During the last 6 years, it has increased from Rs. 9.50 lacs to Rs. 13 lacs and has
grown by 5.5% p.a. It accounts for around 3.25% of the total revenue. The profession
tax for the last 6 years is as below:
Table 9-5: Profession Tax ñ Growth during last 6 years
S.No Year Rs. in lacs % Growth
1 2001-02 9.51
2 2002-03 10.24 7.13%
3 2003-04 10.77 4.92%
4 2004-05 11.89 9.42%
5 2005-06 12.51 4.96%
6 2006-07 12.83 2.49%
The last revision of profession tax was in 2003. The demand and collection of
profession tax over the last 6 years is as below:
Table 9-6: Profession Tax ñ Demand Collection % (Rs. in lacs)
S.No Profession Tax 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
1 Demand
- Current 7.20 7.23 10.77 9.14 19.25 12.99
- Arrears 23.30 24.20 22.33 14.91 12.34 7.38
Total 30.50 31.43 33.10 24.05 31.59 20.37
2 Collection
- Current 2.91 3.75 7.65 6.10 16.01 9.22
- Arrears 3.20 14.45 2.26 6.51 1.92 0.52
Total 6.11 18.20 9.91 12.61 17.93 9.74
3 Collection %
- Current 40% 52% 71% 67% 83% 71%
- Arrears 14% 60% 10% 44% 16% 7%
Total 20% 58% 30% 52% 57% 48%
The Municipality has average current collection performance of 70% and the arrears
collection performance is around 20%.
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