KMC says to study impact

Kolkata: The Scheme Review Committee constituted by the Kolkata Municipal Corporation (KMC) has requested to conduct revenue impact stimulation before the introduction of the revised Unit Area Assessment (UAA) system of payment property tax, which the civic body plans to introduce soon. The Scheme Review Committee recently held its meeting

“The committee has in principle agreed to the measures that we are going to introduce to make UAA user-friendly so that more and more people come under its purview. revenue impact which involves a mathematical study of the revenue impact in the existing system and the revised SAU which we will introduce soon,” said a senior KMC official.

According to sources, the KMC is proposing to reduce occupancy fees for tenants and reduce fees for commercial property that rents the same for use to another party.

KMC had mopped up property tax of Rs 881 crore over the past year. This year, in the first six months (January to June), revenues reached almost Rs 420 crore, which is Rs 100 crore more than the corresponding period, the previous year. Credai Bengal, an advocacy group for state property developers, made suggestions on simplifying the UAA and KMC also considered the model followed by other metropolitan cities to mop up the assessment tax.

The number of taxpayers according to the records of KMC’s assessment department is over 8 lakh, of which only 20% pay their tax through the UAA. “There were a lot of complexities involved in the UAA system. It has been simplified and after performing the revenue impact stimulation as per the review committee’s instructions, we will seek its approval and send it to the government of the state for its necessary approval,” a senior KMC valuation department official said.

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