Up Plans Property Tax Reforms, Eyes More Revenue, Real Estate News, ET RealEstate

July 16, 2023

LUCKNOW: UP is planning to revise the method of calculation of property tax within smaller cities and towns.

To make the urban local bodies self-sustainable, the Yogi Adityanath government is expected to give its go ahead to the urban development department to implement property tax reforms which would result in higher tax collection.

While 14 out of 17 nagar nigams (municipal corporations) in UP have implemented GIS-based property tax calculation module, the 199 nagar palikas (municipal councils) and 544 nagar panchayats (town councils) are still calculating tax and annual rental value manually.

The corporations, on the other hand, have been using GIS-based technology since 2018. Looking to improve its revenue collection, the GIS-based calculation methodology will be implemented in the 17 corporations within the present fiscal year.

“We are going to push for tax reforms in nagar palikas which have a population of more than 1 lakh by the end of this year. Later on, other ULBs will also be included,” said director of regional centre for urban environmental studies, Lucknow, Nishith Rai.

The department expects its revenue will go up by 2.5 times through the use of GIS technology.

Sharing an example, principal secretary of the department, Amrit Abhijat said that in Lucknow an increase of 35% has been achieved within a year through the new system. While in 2021-22 Lucknow municipal corporation cornered Rs 282 crore as property tax, during 2022-23 the collection increased to Rs 381 crore. Meanwhile, the department is also contemplating increasing property tax slabs for commercial properties not registered with the tourism department.

“Hotels, guest houses, resorts which are not registered with the tourism department will have to pay six times the annual rental value of the locality. The ones registered will be asked to pay three times the rental value,” informed an officer.

  • Published On Jul 16, 2023 at 06:02 PM IST

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