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MCGM MAY HIKE TAXES TO BAIL OUT FROM FINANCIAL CRISIS

mcgm-crises-4The cash-strapped MCGM is doing all it can to bail itself out of the current financial crisis. A report filed by the administration enlisting suggestions and possible solutions, including an increase in taxes and introducing new ones, was tabled before the civic standing committee. The more-than-five-hour special meeting called between officials and corporators by the Standing Committee ended inconclusively but threw up several plans that the civic body could undertake to tide over the crunch. According to the report, the MCGM has planned to increase the general taxes to 50%. The fire tax, which stands at 4% now, is pegged to be increased by 1%. The report also suggests an introduction of new taxes. MCGM officials, hoping to recover the current financial losses, have also proposed cutting costs of various projects, which would add up to Rs 685.79 crore to the civic exchequer. However, corporators from all parties opposed the idea of increasing taxes. Standing Committee Chairman Ravindra Waikar said that there was a need to verify the state of the financial crisis and how deep it is and if the situation is really bad, then funds from the Centre should be asked rather than burdening the tax payer.

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