State to geo-tag properties to bridge tax collection gap

Suspecting a wide mismatch between the tax receipts and the number of properties in urban local bodies, the Department of Local Government has started geo-tagging all properties in the state.

Expecting a shortfall of nearly Rs 300 crore in the collection of property tax, the department has so far completed a survey in 19 urban local bodies (ULBs). These comprise nearly 13 lakh properties, including 1,40,000 commercial, 49,800 industrial and 8,17,000 residential. A survey in 22 more ULBs is in progress.

After completing the survey in 19 ULBs, the department affixed plates at the tagged properties in towns like Hoshiarpur, Patiala, Khanna, Dera Bassi, Sultanpur Lodhi and Chamkaur Sahib.

In a preliminary survey, it was found that there was an average Rs 2 crore to Rs 3 crore shortfall in property tax per ULB. In bigger ULBs having municipal corporations, the deficit could be much higher.

Officials handling the project said geo-tagging was enabling the department to have exact location, actual covered area and the nature of activity being carried out in a specific property. Due to absence of geo-tagging, many properties in large towns like Ludhiana, Jalandhar and Amritsar have so far remained out of radar of the tax authorities. So far, property tax was being realised on the basis of self-assessment.

During the previous Congress government, a fact-finding report on illegal structures in Ludhiana found a mismatch between power connections provided by the PSPCL, the total layout plans approved and property tax receipts. It was pointed out that evaluation of tax on the basis of covered area of properties did not match with the actual covered area.

With officials in the ULBs being given targets, the property tax collection has increased from Rs 282 crore in 2021-2022 to Rs 400 crore in 2022-2023 and Rs 486 crore in 2023-2024.