News shortcuts: From the Courts | Top Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | Professional Updates | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
« General »
 Covid-19 crisis threatens to wipe out gains from corporation tax cut
 Big tax shortfall raises Centreā€™s fiscal deficit to 4.6%
 Experience with GST holds valuable lessons for One Nation One Ration Card
 Firms may get input tax credit for masks, PPEs
 Traders seek deferring of property tax
 COVID-19: Kerala Government extends Time Limit of Payment of License Fee and Renewal of Registration under various Acts
 Rajasthan HC grants Bail to Chartered Accountant accused of Corruption and Money Laundering
 Will your tax liability go up with no reimbursement?
 Residency relief for NRIs and foreigners: A welcome tax initiative
 Finance Ministry dismisses reports of pay cuts for central government employees
 ACCA to introduce Remote Exam-Taking

Why we need better property tax systems
October, 25th 2019

Cities are at the heart of economic growth everywhere. However, in developing economies, limited municipal revenues and resources can severely restrict a city’s ability to finance the infrastructure and services necessary for greater economic activity and better well-being for residents.

In an article published on the Ideas for India portal, Soumyadip Chattopadhyay and Arjun Kumar suggest that even a modest increase in revenue from property tax systems can help Indian city-level municipal governments or urban local bodies (ULBs) expand their tax collections and allow them to invest in their city’s development.

Property tax, which is levied on ownership of any real property, can be a significant source of revenue. However, in India, it is hindered by poor assessment of properties, inefficient collection, and widespread exemptions.

The authors argue that ULBs generally do not have a proper system in place to count the actual number of taxable properties under their jurisdiction.

The authors estimate that, on average, only 37% of property tax is collected. Further, exempted properties in India constitute approximately 10% of the total urban properties and about 11% of the assessed properties.

Because of all this, India lags behind global standards in property tax collections. According to the author’s calculations, India’s property tax collections are roughly 0.2% of India’s gross domestic product, well below the proportion in other countries such as the US and Canada where the proportion is around 3 to 4%.

They suggest that India needs to improve the way cities value properties to expand the tax base while making existing tax collection systems more efficient.

To do this, they recommend digitization of property records and reformed billing and payment systems as potential reforms.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2020 CAinINDIA All Right Reserved.
Designed and Developed by Ritz Consulting