Engaging third party for property tax collection will not result in additional financial burden: Assam govt

With Assam government’s decision to engage third party for collection of property tax resulting in apprehension from several quarters, Assam government stated that this move is towards the financial empowerment of Urban Local Bodies in Assam and will not put any additional tax burden on the people.

The Assam Cabinet had also taken the decision to engage third parties for property tax collection in Guwahati, Silchar, Dibrugarh and Nagaon.

Former minister and BJP MLA Siddhartha Bhattacharya told media persons that the concerned minister of the department must resign if he is not able to collect taxes.


The government in statement stated that the 74th constitutional amendment envisages that Municipal Bodies should be vibrant units of Local Self Government. Self-sufficiency of ULB's is therefore extremely crucial for the provision of basic amenities.

Property tax is the largest share of revenue for ULBs'. However, it is constrained by low coverage and poor collection. In respect of GMC, in the last FY of 2021-22, the Corporation could collect only 23.5% of their annual demand of property tax.

Ways to enhance Municipal revenue was deliberated at length in the conference of Chief Secretaries chaired by the Prime Minister at Dharamshala from June 16th-18th, 2022. Third party assessment of property tax through PPP which was started in Ranchi was presented in the conference and has resulted in enhancement of revenue collection by fourfold in 3 years.

The assessment base of properties showed a growth of 67%. This has been extended to all cities in Jharkhand. It is also being followed in several ULBs' of Rajasthan, Chhattisgarh and Bihar. It has been documented as a best practice for property tax reform by NITI Aayog. Further 15th Finance Commission Reforms agenda and AMRUT reforms mandate 90% coverage and 90% collection of property tax,

The government added that the Assam Cabinet had also taken the decision to engage third parties for property tax collection in 4 AMRUT towns viz. Guwahati, Silchar, Dibrugarh and Nagaon as a progressive measure in June 2022. The process is at no additional cost to the Municipal bodies and shall not enhance the existing tax rates to the citizens. This will result in identifying all the property holdings for payment of tax for the overall betterment of the ULBs'.