Dispur plans to introduce unit area method to assess property tax

Jan. 20: Dispur has taken the first major step towards introduction of unit area method for assessment of property tax in the city by entrusting LEA Associates South Asia Pvt. Ltd with the job.

LEA Associates South Asia, a member company of LEA Group Holdings Inc., Toronto, Canada, is a premier multi-disciplinary engineering and planning consulting firm registered in India. It has a site office in the city.

The firm was selected by the GMC through the bidding process to help it introduce property tax reforms using the unit area method.

The value of the firm’s contract is Rs 2.63 crore.

The loan for the project, Assam Governance and Public Resource Management Programme — a component of which is introduction of property tax reforms using the unit area method — has been provided by the Asian Development Bank.

Under the new system, unit area values will be assigned to different localities, depending on their location and pattern of land use.

Several organisations have opposed the introduction of the unit area method, fearing that it would increase the amount of taxes.

A GMC official, however, said there would not be a massive increase in taxes. “It is good that all the areas will not have to pay the same tax as is being paid now. To cite an instance, a person residing in Fatasil Ambari will not have to pay the same property tax as paid by somebody staying at GS Road.”

Introduction of the unit area method will increase revenue from property tax, he added.

LEA Associates will be with the GMC for three years, but the majority of the work will be over in 15 months so that the new method can be applied. The firm will help the corporation to draft the Unit Area Method Act, make rules and prepare a user manual.

The firm will carry out an extensive survey of areas under the GMC and develop an online portal for delivery of services related to the unit area method.

Under this method, each property in the city will be mapped digitally and physically with the help of satellite imageries. Once completed, the mapping will allow the property tax department to identify the defaulter.