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CMC warns defaulters

by Uditha Kumarasinghe

The Colombo Municipal Council (CMC) has issued final notices to all rate-payers in the Colombo Municipality who had defaulted their payments with the threat of confiscation of their movable properties to recover losses.

According to the figures submitted by the CMC, over Rs.2 billion is owed to the CMC by way of rates and taxes that are in arrears. The worst defaulters are ministries, state corporations and commercial establishments.

The rates and taxes owned by Commercial Establishments amount to Rs.274 million while private houses owe Rs.200 million. In this situation, the CMC has faced difficulties in conducting its activities. Stern action will be taken against these tax defaulters this year, CMC sources told the Daily News.

In addition the CMC has to recover Rs.900 million as stamp duties charged from the title deeds issued within the Colombo municipality. These monies are credited to the Central Government which in turn releases the funds to the CMC annually, they said.

" If these funds are granted to the CMC, a massive development drive can be initiated in the municipality by utilising this Rs.900 million. The CMC will discuss with the Department of Land Registration to prepare a program to get back this money, " they said.

" In a situation where the Government establishments are in default, severe difficulties have been encountered by the municipality to collect rates and taxes from private individuals," they asked.

The CMC has already sent many letters to Government institutions. But the CMC has not received a favourable reply from them.

A sum of Rs.143 million is owed to the CMC by the Sri Lanka Ports Authority, Rs.220 million by the Water Supply Board, Rs.70 million by the Urban Development Authority. In addition Ministries owe Rs.136 million to the CMC, State Corporations Rs.66 million and the Housing Development Authority Rs.30 million.

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Copyright 2001 The Associated Newspapers of Ceylon Ltd.
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