The Hindu 23.02.2013
Get ready, BBMP moves to increase property tax
Proposal to reorganise tax zones with areas developing fast.
Gear up to shell out more property tax as the
cash-strapped Bruhat Bangalore Mahanagara Palike (BBMP) is moving to
hike the rates.
The proposal is likely to be tabled
before the BBMP council next Tuesday. The civic authority also proposes
to reorganise the tax zones, besides taking measures to review the rates
under the Unit Area Value system.
According to the
Karnataka Municipal Corporations Act 1976, the tax rates may be revised
by 15 to 30 per cent every three years, also known as block period. They
were due for revision in April 2011, after Self Assessment Scheme was
introduced in 2008-09. However, the BBMP council resolved to up the
block period to five years and sent it for government approval though it
has not heard from the latter yet.
CAG questions
Meanwhile,
the Comptroller and Auditor General (CAG) raised objections to the
failure to revise tax rates, and sought an explanation, prompting BBMP
to reorganise the tax zones and increase the property tax rates.
K.A. Muneendra Kumar, chairperson of BBMP’s Standing Committee for Taxation and Finance, told
The Hindu
that the subject is being tabled before the council only “for
discussion”. “More important than increasing tax rates is the
reorganisation of tax zones. For instance, Mahadevapura comes under C
tax zone.
Though commercial activities have
increased, the tax rate is low. By reorganising the area under a higher
tax zone, the BBMP will be able to get more tax from commercial
establishments there.”
He insisted that tabling the
subject did not mean that the tax would be increased. “The final
decision will be taken by the BBMP council.”
‘No moral right’
Opposition
Leader M.K. Gunashekar voiced his objection saying that the ruling
Bharatiya Janata Party had failed to develop the city and thus had “no
moral right” to even propose increasing the tax rates.
Other sources
“There
are many revenue sources that can be strengthened; instead, the BJP is
keen on burdening the middle class,” he said. “The BBMP can work on
reducing the administrative expenses, increase non-tax revenue such as
advertisement tax, collect betterment charges and implement Akrama
Sakrama and Optic Fibre Cable (OFC) policy,” he added.
