Kolkata’s municipal government raises property taxes due to a lack of funds.

KOLKATA: Faced with a severe revenue shortfall, the Kolkata Municipal Corporation has decided to raise the property tax structure under the unit area assessment (UAA) system throughout the city, affecting nearly 9 lakh property owners.

According to a KMC revenue department proposal approved at the mayor-in-council meeting on Wednesday, the base unit of area value, which primarily determines the tax on a property, has been revised across the board.

Though other factors are considered in arriving at the final property tax valuation, the base unit area value accounts for the lion’s share. The final valuation takes into account amenities and other factors.

The KMC’s decision is subject to approval by the state. The location-based base unit area value has been increased by 10% to 15%, depending on the property category (between A and G). There is even a proposal to establish a new categorization for premium housing complexes, regardless of location – “special housing projects,” which would attract the most tax.

The base unit area value for category a property has been increased from Rs 74 to Rs 82 per sq ft per annum.

Similarly, the rate for category B properties has been revised from Rs 56 to Rs 62 per sq ft per annum; for categories C, D, and E, the revisions are from Rs 42 to Rs 47, Rs 32 to Rs 36, and Rs 24 to Rs 27 per sq ft per annum, respectively. The increase for F and G categories is from Rs 18 to Rs 20 and from Rs 13 to Rs 15 per sq ft per year, respectively.

The “special housing projects” will face the greatest increase. According to an official, all such properties would command the same base unit area value of more than Rs 80 per sq ft per year.