Uttar Pradesh is set to revolutionize property tax calculations in smaller cities and towns, aiming for self-sustainability and increased revenues. Despite manual methods in Nagar Palikas and Nagar Panchayats, the government, led by Yogi Adityanath, is determined to implement GIS-based reforms in all 17 municipal corporations. Starting in the populous Nagar Palikas, the reforms expect a substantial revenue surge. GIS technology has shown success in Lucknow, with a 35 percent increase in tax collection in one year. The government also contemplates revising the property tax slab for unregistered commercial properties.
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The state of Uttar Pradesh is poised to embark on a transformative journey, redefining the landscape of property tax calculations within its smaller cities and towns. With the noble aim of fostering self-sustainability and bolstering revenue generation for urban local bodies, the visionary government under the leadership of Yogi Adityanath is primed to grant approval to the urban development department for the implementation of ground breaking property tax reforms, heralding a new era of enhanced tax collection.
While the advent of Geographic Information System (GIS) technology has revolutionized property tax calculations in 14 out of the 17 Nagar Nigams (municipal corporations), the remaining 199 Nagar Palikas (municipal councils) and 544 Nagar Panchayats (town councils) continue to rely on manual assessment methods. With an ardent desire to boost revenue streams, the government is resolute in implementing GIS-based calculation methodologies across all 17 municipal corporations within the current fiscal year.
The strategic vision entails initiating tax reforms in Nagar Palikas with a population exceeding 1 lakh, paving the way for the subsequent inclusion of other urban local bodies. Nishith Rai, the esteemed director of the Regional Centre for Urban Environmental Studies, envisions this reform as a catalyst for a remarkable 2.5-fold surge in revenue, empowered by the seamless integration of GIS technology. Drawing inspiration from the remarkable progress, Amrit Abhijat, the principal secretary of the department, cites the noteworthy case of Lucknow, where the implementation of the new system yielded a remarkable 35 percent upswing in tax collection within a single year.
The transformative impact is evident as the property tax collection for the Lucknow Municipal Corporation escalated from Rs 282 crore in the fiscal year 2021–22 to an impressive Rs 381 crore in 2022–23. Moreover, the department contemplates revising property tax slabs for commercial properties unregistered with the tourism department. Unregistered establishments such as hotels, guest houses, and resorts will be held liable to pay six times the annual rental value, while their registered counterparts will be obliged to remit three times the rental value.
Embracing an enlightened approach to property tax calculations and harnessing the power of GIS technology, Uttar Pradesh is poised to embark on a transformative trajectory, ensuring streamlined processes, optimized tax collection, and the sustainable development of its urban landscapes.
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