City Corporate & Business Plan - Municipal

Chapter ñ 9 Final Report: Ambur Municipality
- Arrears 13% 34% 23% 22% 23% 30%
Total 37% 41% 35% 33% 34% 40%
The current collection performance of property tax is very poor at around 50-55%
and the arrears collection performance is around 25%.
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 2766 Nos., out of which state /
central / quasi Govt. employees comprise 904 Nos., private employers / companies
is 13 Nos. and traders / self employed professionals 1862 Nos.
During the last 6 years, it has increased from Rs. 10 lacs to Rs. 15 lacs. It accounts for
around 3.5% 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 10.13 -
2 2002-03 10.66 5.23%
3 2003-04 12.45 16.79%
4 2004-05 14.50 16.74%
5 2005-06 15.89 9.59%
6 2006-07 15.09 (5.03%)
The demand and collection of profession tax over the last 6 years is as below:
Table 9-6- Profession Tax ñ Demand Collection %
S.No Profession Tax 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07
1 Demand
- Current 10.09 10.64 12.45 14.50 15.89 -
- Arrears 17.15 19.04 19.84 22.10 18.32 -
Total 27.24 29.68 32.29 36.60 34.21 -
2 Collection
- Current 7.26 7.89 9.18 10.81 10.52 -
- Arrears 1.05 2.05 1.23 1.53 1.81 -
Total 8.31 9.94 10.41 12.34 12.33 -
3 Collection %
- Current 72% 74% 74% 75% 66% -
- Arrears 6% 11% 6% 7% 10% -
Total 31% 33% 32% 34% 36% -
The Municipality has average current collection performance of 75% and the arrears
collection performance is low at around 8%.
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