Prayagraj Municipal Corporation to tax schools, colleges for commercial activities

Prayagraj: In light of the increasing commercial activities in schools and college premises in Sangam city, the Prayagraj Municipal Corporation (PMC) has decided to take a significant step towards curbing this trend and enhancing municipal revenue. The PMC observed that several educational institutions across the city and its newly added areas were engaging in commercial activities such as hosting weddings, operating coaching centres, and renting spaces for various functions. These practices, though profitable for the institutions, often generate annual incomes in lakhs of rupees but do not contribute proportionally to the corporation's revenue due to the educational institutions' exemption from tax.

To address this, the PMC initiated a city-wide survey to identify schools, colleges, and social organisations involved in such commercial undertakings. The objective is to prepare list of properties being used for non-educational, income-generating purposes. Once the survey is completed, the PMC plans to impose a commercial tax on these institutions. Furthermore, the properties identified will be reclassified as ‘mixed-use properties', which will allow the corporation to assess them differently for house tax purposes.

This initiative is driven by the realisation that despite the availability of municipal resources being extended to these institutions, the corporation receives minimal financial return. Regional officers from the corporation have been tasked with site inspections in areas such as Colonelganj, Georgetown, Katra, Civil Lines, Rajapur, and Bairhana. Notices will be issued to institutions found guilty of violating zoning and tax regulations.

According to sources, there are approximately 1,200 to 1,500 such institutions in the city involved in profitable commercial ventures.

A similar situation prevails in peripheral localities like Phaphamau, Teliyarganj, Malak Harhar, Rasulabad, and many others. These activities include not only educational coaching but also the rental of premises for marriage ceremonies and other large-scale social events.

The PMC is taking a holistic approach by involving cleaning staff in the survey process, as these employees often have first-hand knowledge of which premises are being rented out for events. Their reports are already aiding the survey process.

"Once the zone-wise survey is completed, the findings will be presented to the Mayor and the Municipal Commissioner. The decision to officially impose commercial and house taxes on these institutions will be taken based on their directives," said Chief Tax Assessment Officer of PMC, PK Dwivedi. This step by the PMC marks a significant shift in policy to ensure that institutions benefitting commercially from their premises contribute fairly to the city's revenue, he added.