Municipal corporations need to impose adequate user charges to provide better facilities: RBI report
«MCs can significantly enhance them (non-tax revenues) by applying appropriate and adequate fees and user charges for essential services such as water supply, sanitation, and waste management while also ensuring seamless availability of high-quality public services,» it said.
These measures, combined with more transparent and accountable governance practices, can contribute to bolstering the financial health of MCs, setting off a virtuous cycle of better services for the public, stronger revenues and a continuous upgrade of the urban infrastructure, it said.
The major non-tax revenue sources include user charges, trade licensing fees, layout/building approval fees, development charges, betterment charges, sale and hire charges, market fees, slaughterhouse fees, parking fees, birth and death registration fees.
Sources of tax revenue, include property tax, vacant land tax, water benefit tax, advertisement tax, sewerage benefit tax, tax on animals, and taxes on carriages and carts.
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