Bengal eyes five-fold jump in panchayat income with new SOP on tax recovery, revenue reforms
Kolkata, Aug 3
The West Bengal Panchayat Department has issued a Standard Operating Procedure to boost the own-source revenue of panchayats across the state.
A senior government official said on Monday that the SOP lays down detailed guidelines on tax collection, including the process for collecting taxes, ensuring payments are made within a specified timeframe, and the steps to be taken if dues remain unpaid. Besides streamlining tax collection, the SOP also directs panchayats to explore alternative avenues to enhance their own revenue.
The official said that while reviewing the functioning of the panchayat department after the change of government in the state in May this year, several issues were noticed in various areas.
The issues were reported to state Panchayat Minister Dilip Ghosh.
According to the department, the functioning of several gram panchayats was being affected as many panchayat heads were not attending their offices regularly. Officials believe this has disrupted routine administrative work, impacted the delivery of public services, and affected revenue collection. In view of this, the department has placed renewed emphasis on strengthening the financial infrastructure and revenue-generating capacity of panchayats.
The SOP stipulates that the panchayat concerned must complete the tax collection process within three weeks of the deadline set for villagers to pay their taxes. It also provides for offline payment facilities, wherever necessary, to make the process more convenient for taxpayers.
The SOP directs panchayats to prepare a list of taxpayers who fail to pay their dues within the prescribed deadline. If the outstanding tax remains unpaid even 15 days after the list is published, the concerned panchayat will convene a meeting to decide the next course of action. It also mandates panchayats to fix a definite timeline for recovering pending dues and put in place a mechanism for continuous monitoring of the recovery process.
It has also been suggested to hold multiple camps in the panchayat area to increase tax collection. If necessary, it has been asked to involve local MLAs in this drive. The administration believes that if public representatives are actively involved, awareness about paying taxes will increase among the common people and revenue collection will also increase subsequently.
According to the department sources, the state is expected to get around Rs 2,521 crore from the 2028-29 to 2030-31 financial year through the 16th Finance Commission. This money will be available mainly as a 'performance grant'.
However, one of the main conditions for receiving these funds is that panchayats must substantially increase their own revenue. At present, panchayats generate an average annual income of around Rs 233 per household. The government has set a target of raising this to Rs 1,200 per household each year.
Emphasis has been made on increasing income from alternative sources, not just tax collection. It has been asked to prepare a list of roads, bridges or ferry terminals from which toll can be collected. In addition, it has been suggested to identify private organisations and individuals interested in advertising or hoarding in the panchayat area.
The department also believes that it is possible to increase the income of the panchayat through tourism and homestay projects. At the same time, it has been mentioned to explore the possibility of increasing income by leasing various properties, including the panchayat's own immovable property - such as hotels, community halls, ferry terminals, and laboratories.
The SOP also emphasises the need to inform the public about the rural development works being carried out using the panchayats' own revenue, with the aim of improving transparency and encouraging greater public participation in local tax collection.
A panchayat official said, "For the past 15 years, the state's panchayats have functioned in a particular manner. The new Panchayat Minister has made it clear that he does not want to continue with the old system. Instead, he wants to make panchayat offices more active and ensure the effective implementation of Central government schemes."
— IANS
Reader Comments
Good initiative to boost local revenue, but I hope they focus on simplifying the tax payment process for the common villager, not just penalising them. Many rural families struggle to pay even small amounts on time.
Interesting to see the emphasis on transparency. If villages can see where their tax money is going, it could really change the dynamic between the panchayat and the residents. Hope it's implemented well.
The plan to involve local MLAs is smart. When public representatives are part of the drive, people are more likely to listen and pay their dues. But the real test will be in the implementation, especially in remote areas.
The idea of using tourism and homestays for panchayat income is brilliant! Many of our villages have huge potential that has just been ignored for years. Good to see alternative revenue sources being considered. 🏞️
The system for recovering dues looks clear, but the three-week window to collect taxes after the deadline might be too tight for some villages. They need to account for local conditions and not just apply a uniform rule.
If panchayats want to increase revenue, they need to first win the trust of the villagers. When people see roads being
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