Two Dhaka city corporations will not be able to achieve their revenue targets in the current fiscal year due to non-execution of general assessment of holding tax and failure to construct the markets in time or complete rehabilitation.
Of them, the Dhaka North City Corporation (DNCC) will be able to collect around 62 per cent or Tk 3.0 billion of holding tax out of Tk 4.85 billion.
On the other hand, the Dhaka South City Corporation (DSCC) sources said they will be able to earn around 80 per cent or Tk 3.04 billion of their target of Tk 5.15 billion.
Revenue departments of the city corporations earn revenue from nine sectors while another 14 types of revenue are collected by several other departments. The sectors like - holding tax, bazaar salami, advertisement, rickshaw licence fee, property handover fee, octroi, trade licence, rent of various equipment, entertainment tax etc are related with the revenue department.
The DNCC set the target of revenue earnings at about Tk 9.78 billion from 23 sectors in the total budgetary outlay of Tk 23.85 billion for the fiscal year 2017-18. The remaining Tk 1.50 billion was expected to come as the government allocation and Tk 10.29 billion in government and foreign assistance.
The DSCC set a revenue earning target of Tk 10.64 billion from 23 sectors in the Tk 33.38 billion budgetary outlay. The remaining Tk 1.90 billion was expected from the government and Tk 19.38 billion to come in government and foreign assistance.
Talking to the FE, DNCC chief revenue officer (CRO) Rabindra Sree Barua said they would suffer a major blow in collecting revenue in the areas like holding tax and bazaar salami (security deposit of shop owners at a new market).
He said DNCC will be able to collect only Tk 10 million as salami as the targeted rehabilitation of the kitchen market shop owners doing business at Karwan Bazar could not be completed due to some problems. They were supposed to be rehabilitated at Mohakhali, Jatrabari, and Gabtoli markets.
But another official of DNCC's revenue department told the FE that salami amounting to Tk 1.20 billion was fixed only for Mohakhali market. From other markets, the target is Tk 100 million and it will be achieved. Besides, Tk 1.80 billion target from property handover will also be achieved.
The target of rickshaw licence fee of Tk 3.0 million will not be achieved as the process of issuing rickshaw licence is stopped now. In the upcoming fiscal year, licence renewal process will start. The salami target for Mohakhali will not be achieved as there is no policy guideline for the market, he added. He said the government gives Tk 10 million as octroi charges to both the city corporations.
Officials of both DNCC and DSCC said the shop owners at Karwan Bazar cannot be rehabilitated at Jatrabari despite the fact that it was decided long ago and DNCC took salami in 1986. This is because, Karwan Bazar belongs to DNCC and Jatrabari market belongs to DSCC.
Rabindra Sree said despite shortfall of Tk 3.0 billion revenue in the current fiscal year, development works of the city will not be hampered largely due to block and special allocation of government which is Tk 1.50 billion. Sometimes, the corporations undertake development projects like roads construction or repairing and drainage work with the revenue after paying the salaries of the staff.
When asked about the state of revenue earnings, DSCC revenue department officials declined to talk, saying that only the mayor and chief executive officer are authorized to talk to media.
Seeking anonymity, DSCC revenue department officials said they will earn Tk 3.04 billion holding tax which is 80 per cent of the target.
DSCC has already collected Tk 6.0 million as bazaar salami for the two new markets at Chankharpool and Dhakeswari, taking Tk 0.2-0.3 million from the applicants of the shops. The target of bazaar salami was fixed at Tk 3.13 billion, the official said.
Construction of another two markets will start soon at Murgipatti and Roadside in old Dhaka. But the engineering department officials said the two 12-storey markets at Chankharpool and Dhakeswari is under construction. The construction work started in October last year and the project duration is two years. They will hand these over to estate department after construction.
From rickshaw licence, DSCC has already exceeded the target of Tk 36 million with earning of Tk 36.3 million. From property handover, the target of Tk 650 million has been achieved, while they have got Tk 75.0 million as octroi charge. The target of Tk 700 million from trade licence will be achieved while Tk 220 million has been earned as rent of the total target of Tk 300 million.
Regarding impact of revenue shortfall on development projects, a senior DSCC official said DNCC is in an advantageous position in revenue earnings. DNCC earns 65 per cent tax and spends 35 per cent which is reverse for DSCC as it has fewer revenue sources.
