Now, garbage tax-dump on citizens

Now, garbage tax-dump on citizens
Monday August 28 2006 11:37 IST

VIJAYAWADA: Residents of the city will have to pay a monthly garbage tax of Rs 10 from September onwards. While commercial establishments will pay Rs 20, hotels and restaurants would have to shell out any where between Rs 200 and Rs 2000.

A proposal to levy a monthly tax on the collection and segregation of garbage has been placed on the agenda and would come up for discussion at the forthcoming general body meeting of the Vijayawada Municipal Corporation council meeting, which would be held on August 29.

The newly formed Resident Welfare Associations and the Self Help Groups would be roped in to collect the tax.

”Collection of garbage tax is one of the many conditions imposed by the World bank and other lending institutions, funding the Jawarharlal Nehru National Urban Renewal Mission projects, aiming at total cost recovery of the amount spent on sanitation in a period of seven years,” says CPM floor leader Ch Babu Rao.

Reiterating the party’s opposition to any new tax imposed on the residents, Babu Rao said that a sizable component of property taxes are already diverted for maintenance of civic services like upkeep of sanitation, drinking water and UGD.

The cash strapped VMC hopes to raise at least Rs 6 crore annually under the new garbage collection system.

There are 2.5 lakh houses in the city and with each of them paying Rs 10, an annual tax of Rs 3 crore is expected to be collected, while Rs 72 lakh is expected to be collected from about 30,000 commercial establishments, while the 2000 hotels and restaurants would pay about Rs 2 crore.

However, the proposal might raise a heated discussion in the ensuing general body meeting and the CPM says it would oppose the proposal. ”We have been repeatedly expressing our opposition to the imposition of any conditions on people,” Babu Rao added.

Collection of garbage tax is one of the many conditions imposed by the World Bank and other lending institutions, funding the JNNURM projects, aiming at total cost recovery of the amount spent on sanitation.

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Filed under JNNURM, Urban reforms Agenda

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