SHILLONG, JAN 20: Meghalaya cabinet on Wednesday approved the revision of the property tax in local bodies under the Meghalaya Municipal Act, 1973 which will enable it to generate additional revenue of around Rs 5.32 crore.
“With the implementation of the new system of assessment and taxation, the Shillong Municipal Board is likely to generate additional revenue of around Rs 5.32 crores,” Urban Affairs Minister Ampareen Lyngdoh told reporters after a cabinet meeting on Wednesday.
She said, “This will on one hand help in bringing the revenue gap and on the other hand will lead to upgradation and improvement of the level of urban services in Shillong city.”
Based on the recommendation of Second Municipal Valuation Committee constituted by the state government, the Urban Affairs department had come up with a new Unit Area Based Self-Assessment System for assessment of properties in Shillong Municipal Board.
Stating that proposal has two broad components, Lyngdoh said, “This include tax at 4.5 per cent of Annual Rateable Value (Holding tax at 3% and the drainage tax at 1.5%) as against existing tax rates ranging from 6.5% to 10.5% and User charges at Rs 200 per connection per month for water supply, Rs 50 per household per month for Solid Waste Management and Rs 40 per holding per month for street lighting.”
According to her, under most schemes of the Government of India as well as projects funded by Asian Development Bank, one of the reforms required in municipal finance is to convert into a Unit Area Based Self-Assessment System of property taxation in all municipalities.
Stating there is a huge public demand for ugradation and improvement of service delivery by SMB, the minister said, “However, the board has been following old tax rates because of which the board has not been able to generate enough revenue to deliver the services to the satisfaction of the citizens.”
“Due to this, the revenue gap in Shillong Municipal Board (SMB) stands at almost Rs 6.00 crore per annum,” she added.
It may be mentioned here, as per provision of Meghalaya Municipal Act, 1973 (Assam Municipal Act, 1956 as adopted by Meghalaya), fresh assessment of properties has to be done every 5 years for the purpose of determination of rate of Holding Taxes.
Assessment of holdings and revision of tax rates were last done in the year 2007 thereafter no revision of tax rates have taken place, she informed.
She said it is therefore almost 9 years since the last revision of taxes took place in Shillong Municipal Board.- By Our Reporter
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