This story is from January 2, 2002

Follow PMC model, Centre asks states

PATNA: Bihar may be lagging behind other states in many fields but has won laurels for its housing property tax collection system for urban areas.
Follow PMC model, Centre asks states
patna: bihar may be lagging behind other states in many fields but at least in one the state has won laurels. it is a model housing property tax collection system for urban areas on the basis of classification of location, type of construction and nature of use evolved by the patna municipal corporation. after the un centre for human settlements (habitat) lauding the model, the union urban development ministry has advised all state governments and union territories to implement this system.
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according to official sources, following the ministry's letter, the up, mp, gujarat, karnataka, jharkhand, uttaranchal, chhattisgarh and tamil nadu governments have initiated measures for implementing the pmc model. chandigarh has reportedly moved a step forward to implement the model for augmenting its resources. the sources said the ministry has, in its letter, referred to the habitat description of the pmc model as "unique" and said the scheme has been appreciated for simplifying assessment of property tax as it is based on areawise importance of location. at the same time, the ministry, in a note to the bihar government, is learnt to have voiced concern over the sorry state of pmc finances as it has failed to generate enough revenue even after the implementation of the model holding tax system. the note also laments that the bihar government is "yet to implement the pmc model in other municipalities of the state". "if the pmc model is honestly implemented, patna town will have a beautiful look even with its own resources," said a senior official of the state urban development department, adding that "vested interests have again started a surreptitious move to change the model to suit them as they have to pay maximum taxes because of their holdings being in important residential or commercial areas." moreover, holding tax dues owed to pmc have crossed rs 60 crore.even common people who want to pay holding tax regularly are not given demand notes, not to talk of tax collection by pmc staff. for paying holding tax regularly, they have bribe pmc staff, allege a number of holding owners. the model tax system takes into consideration the location of the building, whether it is used for residential or commercial purposes, type of its construction and its carpet area. ever since the model was evolved by the then pmc administrator, sunil kumar singh (now on central deputation), about six years ago, a section of officials, particularly a senior ias officer, has tried to block it. the patna high court struck down the model a few years ago. the state government reluctantly moved the supreme court, which not only upheld the new pmc model but also praised it.
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