Why India's Cities can't crack property tax even after digital push

Cities are experimenting with online portals, waivers and service linkages, yet India's property tax collections remain weak, undermining municipal finances even as urban responsibilities keep rising

India’s cities are pushing harder than ever to raise property tax revenue, yet the needle barely moves. Digital portals, rebates and one-time waivers promise efficiency, but collections remain stubbornly short of targets. And now, a reform drive meant to strengthen urban finances is instead exposing weak systems, poor compliance and political hesitation.

 

Delhi has clubbed licensing of factory licences and general trade licences for hotels, restaurants and others with the property tax portal to ensure businesses have less paperwork to deal with. Announced in the just presented municipal Budget, the measure is expected to nudge the collections from the tax