SHILLONG: With an aim to generate more revenue for the Shillong Municipal Board in order to provide better services to the residents of the city, the State Government on Wednesday revised the property tax for land holdings under the Board.
Speaking to media persons after the Cabinet meeting here, Urban Affairs minister Ampareen Lyngdoh said that as per provision of the Meghalaya Municipal Act, 1973 (Assam Municipal Act, 1956 as adapted by Meghalaya) fresh assessment of properties has to be done every five years for determining the rate of Holding Taxes.
However, it has been almost nine years since the last assessment of holdings and revision of tax rates was carried out in 2007.
“Considering the broad recommendation made by the Second Municipal Valuation Committee constituted by the State Government in March 2011 and with the objective of making assessment of properties more scientific, rational and transparent, Urban Affairs Department has come up with a new Unit Area Based Self Assessment System for assessment of properties in Shillong Municipal Board,” she said. The Unit Area Based Self Assessment System is as per the requirements for the central projects as well as those funded by Asian Development Bank.
She also pointed out that the proposal has two broad components i.e. tax is 4.5% of Annual Rateable Value (Holding tax @ 3 % and drainage tax @ 1.5% as) as against existing tax rates ranging from 6.5% to 10.5% and user charges are 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.
She also said that there is huge public demand for upgrading and improving service delivery by Shillong Municipal Board but the Board has been following old tax rates because of which it has not been able to generate enough revenue to deliver the services to the satisfaction of the citizens.
“The revenue gap in Shillong Municipal Board stands at almost Rs 6 crore per annum and with the implementation of the new system of assessment and taxation, Shillong Municipal Board is likely to generate additional revenue of around Rs. 5.32 crore, which will on one hand help in bringing the revenue gap down and lead to up-gradation and improvement of the level of urban services in Shillong city on the other,” she said.
