Policy for Water Tax Collection:

Water tax may be collected by knowing amount of water consumed. This information is acquired through providing water meters at the entrance of premises of the consumers. Within that case, controlled water is consumed by consumers. But provision of water meters causes head loss and pump capacity has to be enhanced which may cause additional expenditure. Water meters may go defective and hence do not ensure accurate measurement of consumption. Frequent replacement of meters, may be required which may cause inconvenience to consumers. To overcome this difficulty, water tax is levied on consumers as per assessment. Municipal or water supply agency assesses the size and quality of house and based on some basic consumption principle water tax is assessed. In few cases, water tax is levied on flat rate that might result in more consumption and wastage of water.