News
Higher taxes for your property
Assessment rates for properties in different local authority areas are to go up manifold from next year. This is because the Government wants to place a Capital Value on the property instead of the present valuation system. This will apply to properties located in Municipal, Urban Council and Pradeshiya Sabha areas.
At present assessment rates are collected by local authorities based on the “annual value” of properties. This also takes into consideration the general amenities provided by the respective local authorities.
Local Government and Provincial Councils Minister A.L.M. Athaullah has sought the approval of Cabinet to introduce a special provisions law to change the Municipal Council, Urban Council and Pradeshiya Sabha Acts to implement the new system of levy. Amendments will also be made to the Rates and Valuation Ordinance.
In terms of the proposed changes, valuation of properties will be carried out on the basis of capital value. Mr. Athaullah has told his ministerial colleagues that a majority of local councils “have demanded for a new user friendly system of valuation.” He has noted that, though, the Rates and Valuation Ordinance has been in existence since 1946, its legal validity has come into question since it has not been gazetted until now.
Minister Athaullah argues that the capital value rating system is easily understood by the ratepayer. He says it will “reduce the incidence of other valuations” for different purposes and could be used as a base for declaring “values in deeds of transfer” thus reducing revenue loss to the Government arising out of lower declarations in deeds relating to transfer of property.