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Property taxation in India: Issues impacting revenue performance and suggestions for reform

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  • Awasthi, Rajul
  • Nagarajan, Mohan
  • Deininger, Klaus W.

Abstract

While property taxes are ideally suited for cities to generate own source revenue to provide services underpinning global competitiveness, the technical complexity of establishing tax rolls and administering them has traditionally been a deterrent to their more widespread use. We use the example of India to show how national initiatives for regulatory reform, combined with ICT-based approaches and private sector outsourcing, allowed to increase property tax receipts and client satisfaction by creating complete rolls, ensuring realistic valuation, reducing unwarranted exemptions, and improving administration. Beyond offering lessons for other developing countries, this can also reduce cost of service delivery and provide the stepping stone for a complete property register.

Suggested Citation

  • Awasthi, Rajul & Nagarajan, Mohan & Deininger, Klaus W., 2021. "Property taxation in India: Issues impacting revenue performance and suggestions for reform," Land Use Policy, Elsevier, vol. 110(C).
    • Handle: RePEc:eee:lauspo:v:110:y:2021:i:c:s0264837719307690
    DOI: 10.1016/j.landusepol.2020.104539
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    1. Milosavljević, Miloš & Radovanović, Sandro & Delibašić, Boris, 2023. "What drives the performance of tax administrations? Evidence from selected european countries," Economic Modelling, Elsevier, vol. 121(C).

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