RBI report flags large -scale variation in property tax collection across India
Municipal bodies in states like Delhi, Gujarat, Maharashtra, Chandigarh, and Chhattisgarh collect higher taxes relative to other states
New Delhi: It may look surprising but it is a fact that the property tax revenue of the municipal bodies in Delhi is much more than that of bigger states including Uttar Pradesh, Madhya Pradesh, Rajasthan and many other states.
There is a large-scale variation in property tax revenue of municipal bodies of different states. For instance, municipal bodies in Delhi and Gujarat recorded the property tax revenue receipts of Rs 2,940 crore and Rs 1,548.69 crore respectively during 2019-20. On the other hand, the property tax revenue of Uttar Pradesh and Rajasthan was Rs 936.77 crore and Rs 343.98 crore respectively during the same year.
A latest report by the RBI on the financial condition of municipal bodies in the country has disclosed that municipal bodies in states like Delhi, Gujarat, Maharashtra, Chandigarh, and Chhattisgarh collect higher taxes relative to other states.
The report has noted that the collection system is marred by challenges of pending litigation and inadequate staffing in municipal bodies and there is a need for large-scale reform of property taxation practices in India.
