By Accommodation Times Bureau
The High Powered Expert Committee (HPEC) for Estimating Investment Requirements for Urban Infrastructure Services has submitted its report to the Government of India. The report recommends that the Property tax should be rationalized.
The main recommendations regarding property tax include the following 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’; property tax should be levied on all immovable properties including vacant land; the base of levying property tax should be revalued every five years; ULBs should have the flexibility to fix the tax rate with respect to property tax on constructed buildings subject to a floor specified under the law; register of tax payers should be maintained to minimize leakages; tax collection should be through online payment/ computerized centres.
The investment for urban infrastructure estimated by the High Powered Expert Committee (HPEC) for Estimating Investment Requirements for Urban Infrastructure Services is given at Annex–I
Municipal bodies have floated taxable bonds.