Bhubaneswar's Major Institutions Among Top Holding Tax Defaulters
As the financial year concluded on Tuesday, Bhubaneswar Municipal Corporation (BMC) revealed that prominent institutions including Biju Patnaik College, the State Forensic Science Laboratory, the state guest house, and numerous private schools are among the top defaulters in holding tax payments. The BMC had set an ambitious target of collecting Rs 200 crore in holding tax for the 2025-26 financial year but managed to secure only Rs 117 crore, leaving approximately Rs 80 crore outstanding with various defaulters.
Government Institutions Lead Default List
BMC sources disclosed that the state guest house, situated at a prime location covering extensive grounds and featuring VIP accommodations, has evaded over half a crore rupees in taxes. Officials explained that the guest house, administered by the home department, has argued for exemption on grounds that the facility operates on a non-profit basis.
"Among other government institutions, the Central Institute of Language and the state housing board owe Rs 15.85 lakh and Rs 12.73 lakh respectively, despite repeated written requests to clear their dues. We will continue follow-up efforts even as we enter the new financial year. Zone-wise, we will compile categorized defaulter lists and initiate fresh follow-up campaigns," stated BMC deputy commissioner Suryamani Pattjoshi.
Officials estimate that total dues from all government institutions exceed Rs 35 crore. Pattjoshi added, "Additionally, private institutions established on Odisha Industrial Infrastructure Development Corporation (Idco) land have largely defaulted on payments."
Collection Efforts and Challenges
In March alone, the BMC collected Rs 50 crore, indicating that intensive drives, public disclosure of defaulter lists, and persistent follow-ups yielded some results. Last year, the government authorized BMC to collect holding tax from Idco areas, including industrial clusters and parks, to boost annual revenue.
During December and January, the corporation conducted 900 special camps across 67 wards, engaging resident welfare associations to encourage tax compliance. These associations played a crucial role in mobilizing residents of gated communities to fulfill their tax obligations.
Despite these efforts, by the first week of March, BMC had collected only about Rs 70 crore in holding tax, highlighting the ongoing challenges in recovering dues from both public and private entities.
