In a proposal submitted to the Standing Committee, Municipal Commissioner has called to attention similar evaluation methods adopted in Andhra Pradesh and Bihar stating that the new method will not only make tax assessment procedure simpler and accurate, but also check corruption by potential tax evaders.

Now the house tax is decided by subtracting 10 per cent of the annual rental value of the house. The general tax, water tax and conservancy tax are also decided by the general board on the basis of this assessment.

However, the State Government has recently amended the property tax section of the Bombay Provincial Municipal Corporation (BPMC) Act empowering the civic bodies to determine the tax rate by replacing the annual rental assessment with fixing tax rates on the basis of carpet area/built up area.

The amended provisions permit charging a tax rate of a minimum Rs 10 to maximum Rs 40 per square metre carpet area for residential accommodations and Rs 20 minimum to Rs 80 maximum per square metre for commercial establishments. Thus, the civic body will fix varying per centage of tax rates to be charged on houses falling in different areas. For instance, tax rate charged from house owners in Kishanwadi will be different from that charged from those in posh Alkapuri.

``The new system is expected to remove all problems in the taxation procedure because every house owner will be able to assess on the basis of his carpet area how much he is required to pay to the civic body. Chances of the residents cheating the VMC will be brought down to minimum,'' said Municipal Commissioner G R Aloria. The VMC is yet to fix the tax rates.