Thursday, March 19, 2009

At long last -- Mumbai reforms her property tax system

This was an idea whos time has come a 20 years ago.
While still riddled with caveats and riders, this is a welcome move.

Linkage to capital value create buoyancy in the tax base, and mumbai will no longer have to depend upon constant increase in tax rates (the tax rate for commercial propoerties, for instance, was over 120%! -- like 97% income tax in indira gandhi's time) to fight inflation.

Now, how about the other property reforms the city sorely needs:
1. Sending Rent control where it belongs -- to the dust bin?
3. Repealing archaic laws like fixed FSI that throttle the supply of real estate and moving to a more rational system that frees space? (e.g. more FSI near transport hubs)?
4. Moving to a city master plan with simplified, rational bye laws for construction that use FSI as a motivator for realtors to give up land for creating open spaces and infrastructure?
2. Mapping all property parcels in the city down to cadastre into a visual, electronic database (such as a GIS)? This will allow efficient tax administration, ownership management and allows for total tax control, transaction control and also gives the administration full view into land usage?

Many more to come, for mumbai to even become a city worth living in!
But with ULCRA gone and taxes reformed, some glimmers of hope!

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