B5

CHAPTER NO. Ill

TAX - A - SOURCE OF REVENUE OF MUNICIPALITY

It is necessary for Sangli Municipality to

have adequate sources of revenue. The municipality has

to function under double handicaps on the one hand#

fast growing population# repid industrialision# immigration

of rural population and problems of urbanision make heavey

demand on revenue. On the other hand state restrictions

are experienced on the raising of taxes & loans.

The task before this municipality is tremendous

and the power and resources at its disposal to fulfil these

tasks are meagre. The revenue of municipality is known

as 'local revenue', which is'derived from local enterprises#

local services or the wealth of local citizens located

1
within the limits of local bodies'. . The local revenue is

of two types (1) Tax revenue# and (ii) Non-tax revenue.

The sources of income of the municipality are revenue from

specific taxes# grants-in-aid from the State Government#

and non-tax revenue from fees# fines# rents and municipal

enterprises such as city transport# market place# efefj.

1. Rastogi K.M. Local Finance#

Gwalior, 1967, P. 70
 f'' -l
6B

An enquiry report shows that The local bodies derive

about 66% of their ordinary income from tax revenues,
about 21% from non tax revenue and 13% from grants-in-aid.2
The sources of revenue of a municipality may be described
by the following chart.

Municipal Revenue

I I
Tax Revenue Non Tax Revenue
I
I I (1) Property and

Mandatory Discretionary other finds

I i (2) Loans.
1)Property tax 1)Tax on animals.
(3) Grants-in-aid.
2)Taxes on vehicles 2)Tax on Trades.
(4) Fees and
3) General Tax 3)0ctroi.
licenses.
4) Drainage Tax 4)TaX on goods.

5)Conservancy Tax 5)Toll.

6)Tax on dogs.

7)Betterment Tax.

8)Tax on advertisement

9)Theater Tax.

10)Tax on deeds.

11)Any other tax.

2. Angmentation of Financial Resources of urban

local bodies. (Report of committee of minister constituted

by central council of Local Self-Government November 1963.

(Delhi 1965) P. 190.
 G7

The above chart shows that the main sources

of revenue of municipality are imposition of taxes,

licence and fees, grant-in-aid and loans.

Municipal Taxes

State Govt, as per h.ct of 1965 permits the

municipal Authorities to fix the taxes and collect the

funds from the people. These funds are used for the

development and maintenance work of the municipal Borough.

The legal provisions, which facilitate to collect the

funds are delineated ahead. Municipal office in the

state of Maharashtra as per flhe direction issued by

the Government of Maharashtra may impose the taxes

mentioned below.

(a) A consolidated property tax on lands or

building, bassed on rateable value as determined

in accordance with section 114,

(b) An octroi.

(c) Taxes on professions. Trades, Callings, and

employment.
(d) A tax on Cinema, theaters, circuses, carnivals,

and other performances and shows.

(e) A tax on advertisement published in news paper.

Here in Sangli Municipality the consolidated

tax on a property as referred to in (a) above includes

the followings*-
(a) General tax.
(b) General water tqx.
(c) A lighting tax.
(<i) A General sanitary tax.
 r 68

Sometimes the State Government grants-exemption

in respect of any class of property or person from levy

of the taxes mentioned earlier, consequently muncij>al

officer has to forego the imcome from tax source which is

in normal course accsitable to it. Under this circumstances

such loss of income is reimbursed to the municipality.

The amount of loss, however, is A£ decided by the State

Government (Section 106) .

As the made of assessing the loss is decided

by the State Government the municipal councillors were

found criticising this method. According to their

opinions such assessment of loss is always in the fevour

of State Government and it results in providing inadequate

amount to municipal council for reimbursement. The

Sangli Municipality for re-imbuseraent in 1979, had made ,

a representation is above matter. In this representation

it pointed out how the Sangli Municipality under Section 106

had to surrender the income of Rs. 20 lakhs, and for

which only Rs. 5 lakhs were given in the form of re-imbursement.

Provision for exempting »A' class Municipality

leaving Certain taxes.

Through the State Government has permitted

the municipality to impose taxes, some times municipality

does not impose all or some taxes suggested in Section 105.

The reasons for reluctance in imposing taxes

are given below.

 69

(1) Majority of the people is againstaparticular

tax or all taxes.

(2) Though taxes are imposed. Their collection

expenditure is more than the income accruable

from the tax or taxes.

In the view of this, state government may

as per section 107 approves the merit of the case and

after recommendations at least made by 2/3^ number of

councillors, permits the municipal office for not

imposing the tax. But municipality is such case is not

entitled to any reimbursement of losses as provided

in the section 106.

Prior the Sangli Municipality as reluctant

in imposing some taxes and used to take, the shelter of

section 107 and express their inabilities. So also the

councillors were against the policy of raising the rates

of prevalent taxes. Consequently these constituted

as obstruction in raising resources. Concillors indulged

in such practises because they feared of lossing votes

in public elections. When Government administrator took

the charge of municipal councils, they understood the

problems and searched out such taxes which has revenue

potential. Similarly, they have also raised the rates of

the taxes and fees, as a result of this, the tax revenues

of Sangli Municipality were reported to be boosfe#d o£.

This practice was continued and it is noticed that this

municipality at present exploit all the sources of taxes

available to them by virtue of section 105.

 Other Taxes Which Municipality May Impose

A municipality after necessary permission

of the State Government were allowed to impose the

following taxes mentioned below,

(A) A tax on all vehicles (excluding motor

vehicles as defined in the motor vehicle Act, 1939)

boats or animal used for riding, drought or burden and

kept for use within the Municipality area. Whether

they are actiually kept within outside such area.

XB) A toll on vehicles (excluding Motor vehicles

save as provided in section 20 of the Bombay Motor

vehicle Tax Act, 1958) and animals used as aforesaid

entering the municipal area but not liable to taxation

under clause (a) above.

(c) A tax on Bog kept within the municipal area.

(D) A specific sanitary tax upon private latrinas,

premises of compounds cleansed by municipal agency, after

notice given as here in after required.

(E) A drainage Tax.

(F) A specific water tax for water supplied by

the municipality in an individual cases, charges for such

supply being fixed in such mode or modes as shall be best

suited to the varying circumstances of any class of cases

of any individual case.

(G) A tax on pilgrims resorting periodically to a

shrine within the limits of the municipality.

(H) A specific education tax.

(I) Any other tax which under the constitution of

India the state legislature has power to impose in the state.

 7i

Provided that, no special sanitary tax in

respect of private latrines, premises or compounds shall

be levied, unless and until the municipality has....

(1) Made provision for the cleaning these of by

manual labour or for conducting or receiving the sewage

into municipal sewears and.

(2) Issued either severally to the persons to be

charged, or generally to the intabitants of the municipal

area or part ehreof to be charged with such tax, one month

notice of the intention of the municiapality to perform

such cleaning and to leavy such tax are not allowed to be

abolished without the previous sanction of the state

government. (Section 110).

Municipal Council May Vary Rates and

Taxe3 within prescribed limits.

Not withstanding any rule, by law or resolution

specifying the amount of rates at which a tax is leviable

a municipality may, by a resolution passed at a specific

meeting, decides to increase or reduce the amount or rates

at which by the State Government shall be deemed to have

bean suitable amended with effect from the date specified

in the notice referred to under sub section (2)*

Provided that —-

(a) Such increase or reduction shall be within

the maximum and minimum limits fixed in respect

of such tax under the rules,

(b) Such increase or reduction shall not exceed

ten percent of the amount or rate at which such

 72

tax was leviable during the preceding

official year.

When a municipality has by a resolution

decided to increase or reduce the amount of rate at which

any tax is leviable the municipality shall publish in

area, t e resolution together with notice specifying date,

which shall not be less than 30 days from the date of

publication of such notice. While imposing taxes, included

in the purview of section 108 mm. Act, a municipality

has to observe the following procedure (Section 109.)

(a) It shall, by resolution passed at a Special

meeting, select for the purpose one or other of the taxes

specified in that section and approve the bye-laws

concerning the tax selected in such bye-laws specify.

(i) The classes of persons or property or of both,

which the municipality purposes to make liable, and any

exemption which it proposes to make.

(ii) The amount of rate of which the municipality

gxp proposes to assess each such class.

(iii) The mode of levying and recoering the tax and

the dates on which it or instalments (if any) thereof

shall be payable.

(iv) All other which the State Government by rules

mode in this behalf to be specified therein;

(b) When such resolution is passed the municipality

shall take further action to obtain the previous section

of the State Government to the bye-laws under Section 322.

When taxes are imposed as per above i.e.

under section 109, such taxes at which any tax is leviable

 .r
73

shall be increased or reduced. The tax at the amount or

rate so increased or reduced shall be leviable from the

date specified in such notice. (Section 112).

It seems from the section 112 that municipal

authority is permitted to vary rates of taxes within the

limits approved by the State Government, Inspite of this

provision Municipal cormedrllors of Sangli Municipality

were of the openions that not to increase the rates of

taxes, eventhough there were incidences of inadequencies

in revenues. They preferred to seek the help of the

Government while meeting their financial needs. This

situation was changed when Government administrators

took the charge of the municipality. These administrators

often tried to set the tax Limits at maximum level which

was duly approved by the Government.

Usually councillors are against the policy of

raising tax-rates, because they are afraid of public

disfavour and loosing voles in the elections. In view

of this councillors suggest that the State Government

may increase the tax-rates directly and without involving

councillors.

This suggestion, is however, nothing but an

effort to push rolling ball of responsibility in the

other's hands and avoid public disfavour.

Tax Sources of Municipal Revenue.

Sangli Municipality fixed to exploit almost

all the sources of tax revenues permitted under Maharashtra

Municipal Act. Prior to the establishment of full-fleged

Municipality, Municipal Council did not expoit some tax

Provisions which were made with a view to add to

revenues of municipality.

Table No. 1.

Income from Rates and Taxes

1970-71 To 1986-87.
(Rs. in lakhs)

Sr. Years Income Per capita® Income

No. (In absolute Rs.

1) 1970-71 66.49 55.65

2) 1971-72 66.85 54.00

3) 1972-73 76.13 59.43

4) 1973-74 82.89 62.60

55 1974-75 105.71 77.30

6) 1975-76 '128.90 91.36

7) 1976-77 163.75 112.62

8) 1977-78 164.99 110.19

9) 1978-79 180.98 117.48

10) 1979-80 228.69 144.39

11) 1980-81 269.11 165.39

12) 1981-82 329.63 233.22

13) 1982-83 399.63 233.22
14) 1983-84 383.13 218.08
15) 1984-85 412.40 229.11
16) 1985-86 519.02 281.58
17) 1986-87 473.29 250.88

% Increase 711.82 % 450.81 %

over 1971 to 1987

Avarage Rate of 42% 26.5%

Infceease per year
 t - /

75

Table No. 1 informs about the Income of

Sangli Municipality from Rates and taxes. It seens that,

This Municipality during the period of 17 years i.e. from

1970-71 to 1986-87 had the income from rates and taxes

at rising scales. At the beginning i.e. in the year 1970-71.

The income from rates and taxes was Rs. 66.49 lakhs.

This income had gradully increased to a high level of

'Rs. 519.02 lakhs in 1985-86. The avarage annual rate of

increase in tax revenue was 42% for the period under

review and the total increase in this revenue for the

entire period was 711.82%.

Table No. 1 shows information, about per

capita income from rates and taxes. Per capita income

in 1970-71 was insignificant was Rs. 55.65. As the

municipality needed more and more funds, It enhanced the

ratesaad taxes consequently per capita income for rates

and taxes had also registered higher and higher level

and ultimately in the year 1985-86 & 1986-87 it reached

*

the level of Rs. 281.58 and Rs. 250.81. Thus the Sangli

Municipality is better position in the matter of

earning income through rates and taxes.

The Municipal income from this sources also

expanded because of increase trade and commercial .activity

and urbanisation during the last two decade (i960 to 1981).

 . nr; 76

Compositation of Municipal Revenues

1) Octroi.

Octoi is an older tax. However in 1801# it

was reintroduced. In the regin of Lord Ellenborough

octroi was discontinued in the support of free trade

and commerce. It seems that in older days some were

in fevour and some were against in imposing. This tax.

Now-a-days# there are also several controversial openions

about this tax. It is treated as an inhibiting factor

in the smooth growth of local economy in general and

industrialision and road transport in perticular. In

addition to this ill-effects. It is observed as a major

source of decay and needless harassment.

It is not un common to see large numbers of

vehicles standing at octroi nakas waiting paitently for

verification of their goods or refund of the amount of

tax paid consequently this causes delay in movement of

commercial goods.

The forgoing facts about octroi create

impression that octroi is regressive# undesirable and

sacrcscant. However, so far as municipalities are

concern octroi constitutes as a single largest sources

of revenue.
 * .
77

Table No. 2.
INCOME FROM OCTROI
(Income Rs. in lakhs)
Sr. Years Income Per capita collection
No. of octroi Rs.

1) 1970-71 24.95 tt0.89

2) 1972-72 26.54 21.44

3) 1972-73 27.52 21.48

4) 1973-74 30.82 23.26

5) 1974-75 37.18 27.19

6) 1975-76 51.11 36.23

7) 1976-77 61.15 42.05

8) 1977-78 69.33 46.30

9) 1978-79 72.88 47.31

10) 1979-80 82.53 52.10

11) 1980-81 103.27 63.48'

12) 1981-82 121.00 72.44

13) 1982-83 142.25 83.02

14) 1983-84 147.90 84.19

15) 1984-85 153.02 85.00

16) 1985-85 191.41 103.84

17) 1986-87 245.87 130.33

% of increase 985.45 % 623.88

over 1971 to 1987
 The data given in table no. 2 relate to

octroi revenue. The amount of octroi revenue showed

repaid growth from Rs. 24.95 lakhs in 1970-71 to

245.87 lakhs in 1986-87. The total increase in octroi

revenue on the period was 985.45% despite the growth of

population of Sangli. The per capita octroi revenue

had shouwed large expansion. In the year 1986-87, it

was Rs. 130.30.

Table No. 3.

Proportion octroi Revenue to total tax and

Non-Tax revenue.
(Rs. in lakhs)
Sr. Y e ar s Total tax & Income from %of octroi
No. Non t ax Octroi in total tax
revenue & non tax
revenue
1) 1970-71 66.49 24.95 37.53
2) 1972-72 66.85 26.54 39.70
3) 1972-73 76.13 27.52 36.14
4) 1973-74 82.89 30.82 37.17
5) 1974-75 105.37 37.18 35.18
6) 1975-76 128.90 51.11 39.65
7) 1976-77 163.7§ 61.15 37.34
8) 1977-78 164.99 69.33 42.01
9) 1978-79 180.98 72.88 40.27
10) 1979-80 228.69 82.53 36.08
11) 1980-81 269.11 103.27 38.37
12) 1981-82 329.11 121.00 36.77
13) 1982-83 399.63 142.25 35.60
14) 1983-84 383.13 147.90 88.60
15) 1984-85 412.40 153.02 37.10
16) 1985-86 519.02 191.41 36.88
17) 1986-87 473.29 245.87 51.95

The data from table No. 3 shows that octroi revenue

formed rising proportion of total revenue from 35.53% in 1970-71
to 51.95% in 1986-87. Although this proportion had shown
fluctuations.
 ! '.
79

Administration of Octroi Collection exemption#

Refund# etc.

Sangli Municipality needs heavy staff for

collecting the octroi* Several check posts were constructed

for collecting octroi. These check posts or octroi nakas

are used for collection and refunds of octroi. But there

is lot of octori evasion because the traders and businessman

enter the city by small paths which do not have octroi nakas.

In.order to detect such mal-practices flying

squads are employed. These squads try to search out goods

which enter in to city without payment of octroi. A usual

set up of octroi section in the municipality is as fallows.

Here Sangli municipality have made a provision

for making a randomchecking of goods in trucks to instil

the 'fear of being caught* among the transporter, thereby,

inducing them to make correct declarations.

A Need for imporvlnq system of Collection of

ectroi.

Whatever may be the charges laid against Octroi#

its improtanfce in the municipal taxes can not be overlooked.

It provides the municipalities with a major source of

revenue but the system of its collection is infested with

traudulent and corrupt practises. For instance# the

common method of collection of octroi duty is no entrust

the responsibility of the clerk# incharge# of an outpost

established on all roads leading to town and at every

railway and bus station. The clerk assesses the value of

goods and collects the duty accordingly. The present

 (\ f
80

system of collection of octroi is defective from the

following points of view.

i) It provides constant opporturnity for fraud.

ii) It causes delay and oppression owing to the

necessity of entrusting of large discretionary powers

to a subordinate agency.

iii) Its collection is costly and causes hardship

to traders inspite of the system of refunds in the case

of exports.

The municipalities are aware of the corrupt

practises in octroi department. In spite of the above

mentioned drawbacks, octroi can not be ignored by the

municipalities and necessary efforts should be made to

check the corrupt practies. Demands have been made

in the past for the abolition of octroi and the collection

of octroi had also been stopped at some places in the

country. Nevertheless, municipality favour octroi

even though they are conscious about the drawbacks

in its collection. In view of this, the study group of

research centre of Department of Public Administration,

Lucknow has suggested several methods for the improvement

in the collection of octroi, such as....

i) There should be no exemption even for goods

owned by Government without necessary verification and

checking undertaken by the inspecting staff of the

local body.

(ii) There should be suitable statutory provisions

for recording the conviction of such drivers and importers

who evade taxes in their very licences and registration

papers.
 81

(iii) Suitable rewards should be declared by local

bodies in favour of the public helping in the detection of

cases of evasion of octroi.

(iv) Similar to section 153 (A) of the Municipalities

Act, an amendment should be made in the Nagar Palika

Adtainiyam Empowering the officers of the municipality to

exercise powers for search and seizure, etc. for detecting

the evasion of octroi.

(v) Proper facilities should be provided at the

barriers and necessary protection shall be given to the

inspecting staff against aggressive imports in the night.

The existing mode of levying and concession

must be streamlined on the following lines.

(i) The collection of the tax should not be kept

entirely in the hands of the subordinates staff but these

should be greater involvement of the supervisory staff to

eliminate corrupt practices and harrashment involved in

the process.

(ii) Number of check-post should be adequate and

well staffed.

(iii) Grouping of certain adjoining areas to form

an octroi area with sharing proceeds may also be considered.

 Property Tax

Property tax:- Significant Legal Provisions.

The tax on property provides the municipal

authorities with an independent source of revenue. This

tax is stable and elastic source of revenue. Hence

Sangli Municipality has altered tax rate from time to time

in order to increase revenue. So also they have adopted

various measurs of effective assessment and collection

of this tax.

The consolidated property tax includes the

following ways.

(1) General tax bassed on a graduated scale.

(ii) Water Tax.

(iii) Drainage Tax.

(iv) Conservancy tax in areaswhere municipalities

undertake the collection of removal and disposal of

extemetions and polluted matters from privils urinals

and cess-pools.

The properties mentioned bellow have been

exempted from the general tax.

Cl) Buildings and land solely used for purposes

connected with the disposal of the deed.

(2) Buildings and land solely occupied or used for

public charitable purpose,

(3) Buildings solely used as Jails, court Houses,

treasuries, school and colleges.

(4) Anceient monuments subject to any direction

issued by 'state Government in respect of any such monument.

(5) Any building or land the annual value of which

is less than sixty rupees or such higher amount up to

rupees one hundred and eighty as the municipalities may fix#

provided the owner thereof does not own any other building

or land in the city# and

(6) Buildings and lands vesting in the union of

Indian except where provisions of clause (2) of articles

285 of the constitution of India apply.

Administration of Act

In Sangli Municipality property tax is levied

on the basis of the rateable value of a property. In

the case of vacant and other nonrented properties such as

those occupied by owners themselves# factory or public

buildings# however the capital value of the property is

taken in to account to work out its annual rateable value

on the basis of expected return on capital# which is taken

to be between 1% to 9% of the current market value of

property. In Sangli municipality periodical assessment

of annual rateable value is made usually# it is done

after every five years. In the case of rented houses

the fade value of rent receipt is taken in to account to

arrived at the tax able ratable value# subject to the

usual permissible deduction for maintanance# repairs etc.

The rateable value of non-rented houses-vacant or

self occupies is mostly determined indirectly on the

basis of comparability# if rented out houses of similar

specifications are available in the vicinity# otherwise#

the assessment authorities resort to the'fair return*

basis which is taken to be around 9% of the current

capital value of the building.
 r* t \
84

The rates of property tax are defermined by

Sangli Municipality with the approval of the Maharashtra

State Government. This rate is fixed as 24% by Sangli

Municipality. However the maximum limit for property tax

in terms of percentage to the retable value, is fixed by

the State Government and the municipalities are free to

work out their house tax rate structure to suit their

revenue requirements and administrative feasibility.

Unexoloited Potential

The real unexploited potential of property tax

lies in the under valuation of properties which is mainly

result of....

Cl) Subjective assessment, due-mainly to local

influences.

(2) Collusion between landlords and tenants for

mutual benefit, to produce rent receipt for amount lower

than the actual house rent.

(3) Static rental values, in case of a large number

of properties with continued tenants, due to the provision

of the Rent octroi Act, and

(4) Under valuation of self-occupied and vacant

properties, on the basis of comparability with parties

which unvalued.

Taxation of Government Properties.

Sangli Municipality have no data about

properties owned by central and state government and

public sector undertakings, such as government offices,

railway stations, power houses, plant and matchinary

of public sector industrial undertaking etc. Sangli

 .on 85

Sangli Municipality as intention to get the tax revenue

from the above bodies, just has they would in the case of

other privately owed properties. There are at present

certain concessions and exemptions in regard to tax on

such properties, to which municipal councillors have

grave reservations and objections. As they argue, these

exemptions result consider able loss of revenue to which

municipalities have a legitimate claim one the other hand,

it can be argued that such investment by the central and

state governments and other public bodies indirectly

benefits municipalities by giving them an improved status

which, in turn, help & the development of the town and

increase their revenue potential. It is also said that tax

on such properties would only result in a transfer of

funds from one level of government to another and 'since

the amount of revenue under this head will in any case be

small, it would not be worth the trouble. However,

the substitution of tax on government properties by an

additional grant to the municipalities can of course

be a solution.

Growth of Revenue from Property Tax.

Income of Sangli Municipality from House and

Land taxes have registered steady increase since 1970-71.

The data are given in Table No. 4.

Table No. 4.

Income from House & Land Taxes.

(Rs. in lakhs)
Sr. Years Income
No.

1) 1970-71 13.57

2) 1971-72 9.81

3) 1972-73 14.65,

4) 1973-74 16.85

5) 1974-75 18.06

6) 1975-76 20.41

7) 1976-77 25.35
(8) 1977-78 18.89
9) 1978-79 28.82
10) 1979-80 26.05

11) 1980-81 36.85

12) 1981-82 41.08
13) 1982-83 43.11

14) 1983-84 47.27

15) 1984-85 48.06
16) 1985-86 66.27
17) 1986-87 62.46

Although there were minor fluctations in the

amount of property tax revenue in some years, it increased

rapidly from Rs. 13.57 lakhs in 1970-71 to Rs. 20.41 lakhs

in 1975-76 and further to fcs. 3 6.85 in 19831-81. This

revenue was high as Rs. 66.27 lakhs in 1985—86 it, however

declined slightly to Rs. 62.46 lakhs in 1986-87. If the

municipal administration had revised . The property tax

 87

rates from time to time for compensating for intention

as the statute provides and improved its tax administration!.*

ffhe revenue from property tax would have shown till

more bouancy.

Although professional tax has been levied by

the Sangli municipality, it yield very little revenue.

Table Mo. 5.

Professional Tax collected by Municipality.

___________ _________ ____ ____________________________(£i2ures__in_Rugees).

Sr.No. Years Profess ioi

1) 1970-71 —

2) 1972-72 mmmm

3) 1972-73 —
4) 1971-7* mmmm

5) 1974-75 —

6) 1975-76 «»MI

7) 1976-77 3700

8) 1977-78 2250

9) 1978-79 150

10) 1979-80 mb mm

11) 1980-81 —
12) 1981-82 —
13) 1982-83 —
14) 1983-84 mmmm

15) 1984-85 —
16) 1984-85 mmmm

17) 1985-86 —

18) 1986-87
 The data from table no. 5 show that Municipality

collected revenue in 3 years only i.e. 1976- to 1979.

The amount of revenue was very small .

Wheel And Animal Tax.

All vehicls, other than mechanically propelled

vehicles, other conveyances plying for hire or kept

within the city, boats moored therein and animals used

for riding, driving, draught or burden andkept within

the city are taxed. The fixation of wheel tax and animal

tax is quite simple. It is more or less like a free

collected in the form of licence fee.

Table No. 6.

Income from Taxes on Amimal and Vehicals.

(1971 to 1987)
(Figuresin Rupees)

Sr.No. Years Income from

1) 1970-71 2918
2) 1971-72 —
3) 1972-73 465
4) 1973-74 349
5) 1974-75 844
6) 1975-76 209
7) 1976-77 —
8) 1977-78
9) 1978-79 —
10) 1979-80 —
11) 1980-81
12) 1981-82 ——
13) 1982-83 ——
14) 1983-84
15) 1984-85 ——
16) 1985-86 ——

17) 1986-87 ——
 8&

The data taxes on Animal & Vehicles given

to Table No* 6 show that revenue from these taxes collected

in very few years was insignificant.

Service Taxes.

In addition to general property tax, there are

certain service taxes which are levied on the annual

letting value of the immovable property. They are called

service taxes because they are levied as charges for

specific services rendered by the municipality to the

inhabitants. These service tax are....

(1) Water rate levied for the provision of water

supply to the inhabitants of the town.

(2) Lighting rates levied to meet the cost of lighting

the public streets, highways in the cities.

(3) Sanitary cess levied for the purpose of providing

public drains and sewages and their* regular cleaning and

maintainance.

(4) Latrine tax levied on all holdings which have

latx'ines or cess for the cleaning of which the municipality

makes arrangements.

(5) Education, lighting and Drainage rates are

charged collectively on all owners of immovable property

whereas water and latrine rates are charged on the particular

holdings served by the municipality.

 so

Table Ho. 7

Income from Lighting, Water and Conservancy Charges.

(Rs. In lakhs)
Sr.No. Years Income

1) 1970-71 —

2) 1971-72 —

3) 1972-73

4) 1973-74 —

5) 1974-75 —

6) 1975-76 —

7) 1976-77 0.11

8) 1977-78

9) 1978-79 0.23

10) 1979-80 0.60

11) 198S-81 0.84

12) 1981-82 1.83

13) 1982-83 1.42

14) 1983-84 2.16

15) 1984-85 2.69

16) 1985-86 3.78

17) 1986-87 3.20

The data from Table No, 7 show that the income

of Sangli Municipality from lighting, water and conservancy

charges was obtained only from 1978-79, It xiasocxx^z slowly

rose from Rs, 0,23 lakhs in 1978-79 to Rs, 3.20 lakhs in

1986-87.
 r\ •-
■91

Table No. 8.

Income from Tax on Theaters

(Rs. in lakhs)

Sr.No. Years Income

1) 1970-71 0.60

2) 1971-72 0.73

3) 1972-73 0.77

4) 1973-74 0.76

5) 1974-75 0.77

6) 1975-76 0.79

7) 1976-77 0.78

8) 1977-78 0.78

9) 1978-79 0.81

10) 1079-80 0.87

11) 1980-81 0.93

12) 1981-82 1.15

13) 1982-83 1.16

14) 1983-84 1.15

15) 1984-85 1.13

16) 1985-86 1.16

17) 1986-87 1.07

The data given in Table No. 8 show

Revenue from Tax on Theaters . This revenue increased

steadily from Rs. 0.60 lacks in 1971- to Rs. 1.0T lacks

in 1986-87.
 93

Table No. 9.

Income from Realisation Under Special Act.

(Rs. in lacks)

Sr. Years Income

No.

1) 1970-71 0.34

2) 1971-72 0.41

3) 1972-73 0.57

4) 1973-74 0.59

5) 1974-75 0.66

6) 1975-76 0*66

7) 1976-77 0.72

8) 1977-78 0,58

9) 1978-79 0.69

10) 1979-80 1.04

11) 1980-81 1.22

12) 1981-82 1.09

13) 1982-83 0.63

14) 1983-84 0.67
15) 1984-85 0.65
16) 1985-86 0.65
17) 1988-87 0.70

Income from realision under special act of tax

in case of Sangli it was Rs. 0.34 lakhs in 1970-71. It

increased to 1.22 lakhs in 1980-81 and £h ssspa± after

it declined. It was Rs. 0.70 lhkhs in 1986-87.