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Finance Commission holds meeting with MoHUA on property taxation by ULBs

This was in context with the Commission’s recommendations for 2020-21 which had mandated the states to notify floor rates of property tax. MoHUA recommended four per cent  increase of devolution to municipalities.  

The discussions in the meeting centered around creating an enabling environment for Urban local bodies to be placed in the driver’s seat with regard to property tax administration.  

The focus was on making the ULBs responsible for collection of relevant data, valuation or assessment, setting tax rates, collecting tax and requisite oversight on all these aspects. 

MoHUA Secretary Durga Shanker Mishra made a detailed presentation to the Fifteenth finance Commission and submitted MoHUA’s revised memorandum to the Commission. 

The non-financial recommendations include change in mandatory conditions of Property Tax and Ambient air quality grant for cities to curb the sources of air pollution among others. The Ministry also made financial recommendations to the Commission including bridging the resource gap of municipalities.  

The Ministry also informed the Commission about the setting up of a Consultative Group of Urban Development Ministers with regional representation from six states namely Gujarat, Odisha, Tamil Nadu, Punjab, Tripura and  Uttar Pradesh) has been constituted.

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