Civic chief warns of closing educational institutions for want of tax recovery

Chhatrapati Sambhajinagar: The conflict between educational institutions and the Chhatrapati Sambhajinagar Municipal Corporation over property taxes has escalated over the years. The municipal corporation has held numerous meetings on this issue, adopting a conciliatory approach. Then some educational institutions have paid their taxes, while others have refused. As a result, municipal administrator G Sreekanth has hinted at closing such educational institutions, if the tax is not paid.

The CSMC’s tax assessment section levied taxes on educational institutions, which the institutions did not accept. The societies of the institutions argued that it was inappropriate to levy taxes at commercial rates. Their concerns had not been addressed adequately, as a result, taxes to the tune of crores of rupees were left unpaid by the institutions. The administrator found a solution by urging the institutions to pay the portion of the tax they do not dispute while withholding payment on the disputed amount. Once the dispute is resolved, the remaining tax should be paid by the institutions.

Some institution leaders took the initiative to pay, but others did not respond. Those who did not respond were warned by G Sreekanth that their institutions would be closed if the taxes were not paid. Institutions with disputes were instructed to submit registration and tax exemption certificates from the Charity Commissioner. Only upon submission of these certificates would their claims be considered, he clarified.

The municipal corporation reported that due to the administrator's stance, only 15 out of 40 legal cases related to property tax assessments for educational institutions remain pending.