The Kolkata Municipal Corporation [KMC] decided to amend the current property tax for the city. This amendment is being brought with the aim of encouraging the taxpayers to fill the property tax timely. Also, this amendment will ease the process of tax paying as the residents of the Kolkata city will now be paying property tax according to the Unit Area Assessment [UAA] system in place of the rent-based assessment. The Kolkata Municipal Corporation is ready with their draft for further examination by the State Municipal Affairs Department before laying it on the table of the West Bengal State Legislative Assembly.
The new calculation process came as a big relief to the residential property owners of the city. Interestingly, the common areas in commercial buildings are relieved to stay out of the flat area that is being assessed. The KMC [Kolkata Municipal Corporation] cleared that the change in the calculation of property tax will not result in the increase of the same. The corporation kept 20% cap on increasing/lowering taxes for 5 years or 1 tax cycle unchanged.
The Revenue Department also stated that the new property tax form has been simply designed and it is estimated that nearly 60, 000 property owners have submitted the UAA applications out of the 7.8 lakh taxpayers of city. The corporation and the city Mayor also decided to abolish the irrelevant rules clauses from the property tax that misfit according to the current situation.
The Kolkata Municipal Corporation also collaborated with CREDAI-Bengal, the representative body of real estate developers in Kolkata to seek help in the UAA implementation.