Tap Property Tax

With rapid urbanisation posing tremendous challenges in delivery of services, the Economic Survey today suggested that municipalities should tap the potential of “property tax” to generate additional revenues at the city level.

The survey found through a study that Bengaluru and Jaipur are currently collecting no more than 5-20 per cent of their respective potential for property tax. It suggested that “satellite imagery” should be used for improving urban governance by facilitating better property tax compliance.

“Urbanisation will pose considerable challenges for municipalities over the coming decades. But these challenges can be – indeed, must be – overcome,” the survey said.

Stating that urbanisation would define the trajectory of Indian development, the report said exodus of rural population into cities over the coming decades would pose tremendous challenges for government, particularly the municipalities, who would be primarily responsible for providing the services that the new migrants and established residents need. Every Indian city faces serious challenges related to water and power supply, waste management, public transport, education, healthcare, safety, and pollution.

“Competition between states is becoming a powerful dynamic of change and progress, that dynamic must extend to competition between states and cities and between cities.

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