Officials continue to claim reward for tax collection despite online and camp-based payment systems

KOLLAM: Even in an era where building tax collection has shifted to online payments and tax collection camps, local government officials continue to claim prize money (reward) that was introduced to encourage the collection of building tax by visiting houses. These officials receive a reward equivalent to one month’s basic salary each year if their local body achieves 100% tax collection. However, with little to no effort or risk involved, officials continue to collect these rewards, causing financial strain on the government treasury.

Currently, building tax can be paid online, directly at the panchayat office, or through camps organized at libraries and anganwadis. The remaining taxes are collected by ASHA workers, and in most cases, officials do not go door-to-door for tax collection anymore. In some instances, officials have even paid unpaid taxes from their own pockets to achieve 100% collection and secure the reward.

In each ward, LD clerks are responsible for tax collection, while in larger panchayats, the responsibility is shared with office assistants. The secretary of the panchayat receives half a month’s basic salary as a reward, while other officials receive a full month’s basic salary. The reward amount is disbursed from the own fund of the local body, similar to salaries. Once 100% tax collection is achieved, a Demand Collection Balance (DCB) report is submitted to the Joint Director of the Local Self-Government Department. After this, an internal vigilance officer conducts an inspection before approving the reward. Panchayat secretaries reportedly claim rewards of Rs 40,000 to Rs 50,000 per year.

Reward system continues despite online tax payments
Although there are special bill collectors, the majority of municipalities do not achieve 100% building tax collection. However, around 70% of panchayats successfully collect 100% of building tax. A few years ago, the Assistant Secretary was designated as the nodal officer for building tax collection. However, the nodal officer is not eligible for any reward for tax collection.

• Total number of panchayats: 941
• Panchayats achieving 100% building tax collection: 70%
• Building tax paid online: 35%