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Vertical Inequity in the Taxation of Residential Properties: Evidence from Greater Mumbai
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This paper explores the direction and extent of vertical inequity in the taxation of residential properties in Greater Mumbai. Based on the data from a representative sample of properties from the city and suburbs, it employs multiple econometric tools to explore the problem. Findings of the study indicate that the system is iniquitous and regressive. There is a significant disparity in the effective tax burden between the main city and suburban properties, and separate treatments are also accorded to high and low end properties. Such studies can be replicated in other contexts where property tax systems are alleged to be iniquitous.
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