Vellakovil City Development Plan - Municipal
Vellakovil City Development Plan - Municipal
Vellakovil City Development Plan - Municipal
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<strong>City</strong> <strong>Development</strong> <strong>Plan</strong> for Vellakoil <strong>Municipal</strong>ity SMEC India Pvt Ltd<br />
Final Report TNUDP III<br />
The growth rates for the various heads of income and expenditure have been arrived based on the<br />
past growth rates and the future estimated population growth. Improvements to the existing current<br />
and arrears collection percentages have been assumed for the various revenues directly collected<br />
by the <strong>Municipal</strong>ity, which implies that the <strong>Municipal</strong>ity would have to improve its collection<br />
mechanism to sustain full investments.<br />
Given below are the various assumptions forming part of the FOP workings :<br />
8.5.1 INCOME<br />
a) Property Tax<br />
The population of Vellakoil <strong>Municipal</strong>ity is estimated to grow at around 2.5% p.a. Based on the same<br />
Property Tax Revenue are assumed to increase @ 2.5% per annum. The last revision of Property<br />
Tax was carried out on 1-10-98 and it is assumed that the next revision will be carried out in the<br />
current year. It is assumed that there will be an increase of 25% due to revision in 2008-09 & that<br />
revision would be done @ 15% every 5 years.<br />
It has also been established as per the Survey in 2002 that around 27% of the properties are<br />
unassessed and further 20-25% of the properties are unassessed. Considering the above, it is<br />
assumed that the same shall be set right and together these shall contribute to increase in property<br />
tax revenue by 20% from next year viz. 2009-10, after completion of GIS mapping.<br />
The Property Tax income is divided between Revenue, Water Supply and Education Fund in the<br />
following ratio:<br />
Table: 8.6 Ratio of Property tax<br />
Description Per Annum<br />
General 4.000%<br />
Scavanging 2.000% Revenue & Capital Fund<br />
Lighting 1.000%<br />
Water Tax 2.000% Water Supply & Drainage Fund<br />
Drainage 1.000%<br />
Education - Education Fund<br />
Total 10.000%<br />
b) Profession tax<br />
Income from Profession Tax is assumed to increase @ 5% per annum. The Profession Tax was last<br />
revised on 1.10.2003 and the next revision is due in 2008-09. It is assumed that every revision<br />
would contribute to 15% increase<br />
Besides, the profession tax base would be increased by carrying out survey in 2010-11. It is<br />
assumed that the survey would increase the profession tax base by 20% in 2010-11.<br />
c) Assigned revenue<br />
Assigned Revenue comprises Entertainment Tax and Surcharge on Stamp Duty. It is assumed the<br />
same shall increase as under :<br />
Duty on Transfer of Property : 5%<br />
Entertainment Tax : 1%<br />
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