Assam engages third party for property tax collection

Failure of Assam government to increase property tax colection has resulted in the government having to engage third party for property tax collection in four towns- Guwahati, Silchar, Dibrugarh and Nagaon.

The decision has been taken to enhance property tax collection which is the largest share of revenue for urban local bodies. "However it is constrained by low coverage and poor collection in respect of Guwahati Municipal Corporation. "In FY 21-22, the Corporation could collect only 23.5 percent of their annual demand of property tax" official sources said.

The issue of enhancing municipal revenue was deliberated at length on the conference of chief secretaries chaired by Prime Minister at Dharamshala from June 16-18. Third party assessment of property tax through Public Private Partnership( PPP) which was started in Ranchi was presented in the conference which resulted in enhancement of revenue collection by fourfold in three years. The assessment base of properties showed a growth of 67 percent. This has been extended to all cities on Jharkhand and is also being followed in several urban local bodies of Rajasthan, Chattisgarh and Bihar.

" It has also been documented as a best practice for property tax reform by NITI Aayog. The 15th Finance Commission agenda and AMRUT reforms mandate 90 percent coverage and 90 percent collection of property tax" official sources said.

The Assam government said the process is at no additional cost to the municipal bodies and shall not enhance the existing tax rates to the citizens. " This will result in identifying all the property holdings for payment of tax for overall development of the urban local bodies and is a step forward for the financial empowerment of the urban local bodies.

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