Rationalize property tax system – HPEC
The high power expert committee (HPEC) in its report to the union government has recommended that the property tax system in the country should be rationalized.
Property tax should be retained as a general benefit tax, and its components such as water tax and sewerage tax should be replaced by appropriate ‘user charges’, recommended the committee. It also recommended that property tax should be levied on all immovable properties including vacant land and the base of levying property tax should be revalued every five years.
The committee also stated that the urban local bodies should have the flexibility to fix the tax rate with respect to property tax on constructed building and the tax collection should be through online payment/computerized centres stated the committee report.
Meanwhile the Maharashtra government‘s urban development department has recommended that the municipal corporations in the state should adopt the capital value-based system to calculate property tax. At present, the tax is computed on the annual ratable value of the property.
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Source: Times of India
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