Property taxation needs structural reform

India's municipal bodies have struggled with collecting property taxes, with the cumulative property tax amounting to only 0.15-0.2% of the country's GDP. This poor performance highlights the need for structural reform in property taxation. If implemented effectively, such reforms could lead to increased tax revenue for municipal bodies, enabling them to fund essential public services and infrastructure projects.

Why it matters

India's municipal bodies have poor property tax performance, which could affect their ability to service debt. This may lead to a decrease in investor confidence in municipal bonds.

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