Annual govt grant for CCC dwindles

Besides, the outstanding tax and the abolition of Octroi (city tax) added to the problems.

CCC got an annual grant of Tk 14 crore in the Annual Development Programme (ADP) for 2004-2005 financial year (FY) from the government. The lump grant also came down to Tk 20.33 crore in the current fiscal from Tk 33 crore of 2000-2001 financial year (FY).

Having Chittagong in a geographically significant location and enriched with natural beauty, CCC took up several income generation projects as part of its development efforts. But the outstanding tax and the dissolution of Octroi system stood in the way of implementing the projects, sources said.

The number of holdings (houses) under the 41 CCC wards is around 1.13 lakh, including 23,000 thatched houses exempted from holding tax. The rest 90,000 holdings cleared Tk 31.64 crore as holding tax against Tk 97.95 crore leaving Tk 66.31 crore outstanding in the last fiscal year, sources said.

CCC taxes amounting to Tk 62.52 crore, including Tk 35.14 crore due to Bangladesh Railway and Tk 6.06 crore to Chittagong Development Authority, remained unpaid till date, sources said.

Besides, Tk 115 crore tax of Chittagong Port Authority remained pending since long, they added.

Under the circumstances, Mayor ABM Mohiuddin Chowdhury at a post-budget press conference on June 29 urged for reintroduction of Octroi system to help CCC emerge as a self-reliant development agent of the government.

He said that to keep its development activities continued CCC at present has to depend largely on the government grant, which is always very insufficient. As such reintroduction of the city tax was required, he added.

He said the city tax was the main source of income for local government until the government dissolved it in 1981 to provide CCC with a negligible annual compensation of Tk 1.60 crore since then.

Reintroduction of Octroi would help CCC earn annual revenue of at least Tk 50 crore and will be able continue its development activities without lump grant, he said.

The heavy vehicles carrying exported and imported goods caused massive damage to the city roads as majority of the foreign revenue of the country is earned through Chittagong port, he said.

But, Chittagong Port Authority pays only Tk 7 crore as tax to city corporation against Tk 40 crore annually, he said.

"I don't want to compromise with this irregularities and deprivation any longer and in the interest of the development of Chittagong I will take necessary steps in this regard," Mohiuddin Chowdhury said.

If necessary, CCC will go for legal action and build up movement along with the city dwellers, he said.

"I am a part of the government, I am not opposing the government and I am talking about the rights of the city dwellers," Mohiuddin Chowdhury said.