GOVERNMENT
OF INDIA
A Digital India Initiative
GOVERNMENT
OF INDIA
Background
Ranchi city is governed by the Municipal Corporation which comes under Ranchi Metropolitan Region. As per provisional reports of Census India, population of Ranchi in 2011 is 10,73,427; while its urban population is 11,26,720. The total municipal area of the district is 175.12 square kilometres. There are 53 wards in Ranchi Municipal Corporation area.
Property owners in the city are required to pay property tax every year. Property tax is the annual amount paid by a landowner to the local government or the Municipal Corporation of his area. The property includes all tangible real estate property, house, office building and the property that has been rented to others. But the corporation was seeing very low revenues from property taxes.
Solution
In fiscal year 2015-16, RMC introduced several measures to cater to its tax collection problem. It conducted a survey to identify the unassessed property and also rolled out the Self Assessment Form (SAF) scheme, through which the citizens could self-declare their property taxes. This was done to bring more properties under the purview of property taxes for the Corporation. To improve transparency and increase the ease of carrying out operations like- assessment, billing and collection, for Property Tax, RMC introduced an online payment system since 2015. Citizens can choose to pay taxes via online as well as offline payment modes. Also, RMC targets to achieve better revenue realization annually with a pre-planned collection drives and area-based assessment of properties based on revenue zones. Adding to that, RMC also monitors and identify defaulters and plan recovery initiatives of taxes with major action plans.
As per data, the total revenue collection-Property tax in fiscal year 2015-16 is 11.82 crores, in year 2016-17 is 41.18 crores, in year 2017-18 is 40.91 crores, in year 2018-19 is 45.97 crores, in year 2019-20 is 49.98 crores, in year 2020-21 is 50.63 crores and in year 2021-22 is 44.72 crores.
Property Tax Revenue for RMC (value in INR)
Outcome:
So, as per data, presently we can see a slight rise in the Property Tax Revenue for RMC from Private Properties, Properties declared via SAF, as well as Government Properties over the past few years. Identification of the unassessed property through survey or encouragement of self declaration has helped RMC capture primary data based on which Annual Tax liability has been imposed and hence the collection figure are increasing. Thus, helping the Corporation become more self-sufficient.