With the aim of undertaking socio-economic and infrastructure projects and delivering better services to the city dweller in a fast and efficient manner, city corporations have been established in different parts of the country as an autonomous body directly under the local government. To revitalise their strength and ensure proper and smooth development in a particular area, city corporations are given authority to collect revenues using their resources on their own accords (following relevant laws) and spend the money as per their requirement. However, city corporations in our country often fail to generate the collection required for developments. Among many other reasons, the inability to comply with relevant laws is a major contributor to their failure.
According to the lead news published in this daily yesterday, the two city corporations in the capital are losing a huge amount of revenue every year, thanks to their silence in regards to re-assessing the holding tax for the last 33 years. Though a provision is there to reassess holding tax every five years, the authorities have reportedly been collecting tax against the rent fixed in 1989 at Tk. 2000 despite around 400 per cent hikes in the house rent during this period. The authorities have turned back from their decision to reassess the tax several times in the face of protests from house owners and fearing a backlash from the voters.