Urban News

  • Increase font size
  • Default font size
  • Decrease font size
General Administration

MCC urged to revise property tax next fiscal

Wednesday, 30 October 2013 05:13 administrator
Print PDF

The Hindu            30.10.2013

MCC urged to revise property tax next fiscal

Special Correspondent

Delegation says revision is done every three years; last was in 2011

A citizens’ delegation has urged the Mysore City Corporation (MCC) to give effect to hike in property tax from the next financial year (April 1, 2014).

The delegation led by M. Lakshman, convener, Association of Concerned and Informed Citizens of Mysore and H.V.S. Murthy, advocate and general secretary of Tax Payers Federation, met Chairman of the Standing Committee on Taxation and Finance B.L. Bhyrappa on Tuesday.

They said according to the Self Assessment System (SAS) of taxation, which came into effect in 2005, there would be an automatic increase in property tax every three years. Hence, the revised rate of property tax should be applicable from the next financial year and not April 1, 2013, they said.

In a memorandum submitted to Mr. Bhyrappa, they said as per the SAS , which was introduced based on Section 45(B) of Karnataka Stamp Duty Act, the property tax would be hiked automatically by 15 per cent every three years effective from 2005–2006.

They said the hike was effective in 2005, 2008 and 2011, and hence should next be effective in 2014.

The delegation threatened to approach the High Court of Karnataka against the MCC, in case it approved the hike for the current financial year.

Meanwhile, Mr. Bhyrappa told The Hindu that the revised taxation rate would be given force from the next financial year.

Interestingly, the MCC had projected revenue of over Rs. 93 crore from property tax during 2013–14 in anticipation of the hike in taxation rate. But, it is unlikely that the MCC council will approve it for this year. The council, which met on Monday, did not take up the subject though it was listed in the agenda.

The delegation also urged the MCC to tone up its property tax collection rate and pointed out that it had achieved a target of only 60 per cent of the projected revenue. It was also pointed out that property owners in 12 areas of the city were paying tax less than what was prescribed in the Act, while there were many private layouts that did not pay tax at all.

If the proposed hike is deferred to the new financial year as stated by the Chairman of the Taxation Committee, the MCC will be hard pressed to meet the last financial year’s target of nearly Rs. 78 crore as well.

However, Mr. Bhyrappa said there were more than 32 private layouts and about 40 Mysore Urban Development Authority layouts that were served by the MCC by way of extending civic amenities. “We cannot continue to provide amenities indefinitely without getting revenue by way of property tax, and hence will bring them under the ambit of taxation. In addition, there are many property owners in the city who do not comply with the law and pay tax. We will tax all of them to meet the target,” he added.

The citizens’ delegation suggested that the government departments housed in various buildings be brought under the property tax net. Exemptions could be granted only to service oriented institutions like schools and hospitals. The MCC was also urged to tax industries coming under the MCC limits, though it sought tax concession for senior citizens of Mysore.

 

Rs. 3,250-crore revolving fund proposed to grant loans to ULBs

Wednesday, 30 October 2013 05:05 administrator
Print PDF

The Hindu            30.10.2013

Rs. 3,250-crore revolving fund proposed to grant loans to ULBs

Special Correspondent

Loans for development work to be given at 6 per cent rate of interest

The State government has proposed to set up a Rs. 3,250-crore revolving fund to grant loans to urban local bodies (ULBs), including city corporations, at six per cent rate of interest to take up development work.

Urban Development Minister Vinay Kumar Sorake told presspersons here on Tuesday that the objective of the fund was to grant loans to urban local bodies that have been facing severe financial constraints and have not been able to provide basic amenities to citizens. The loan amount should be utilised for providing basic facilities such as drinking water, solid waste management, road connectivity, land acquisition and underground drainage.

The department officials have been told to prepare a note to be placed before the State Cabinet for approval. The department has received funds from the Union government and international funding agencies and these funds will be given to urban local bodies facing a funds crunch, he said.

Probe ordered

Mr. Sorake said that he has issued directions to the Regional Commissioner to investigate the alleged irregularities in the implementation of a Kundamestri drinking water scheme in Kodagu district and submit a report.

The project to pump water from Kundamestri to augment the water level at the Kootuhole reservoir (which caters to most of the drinking water needs of Madikeri city) was initially estimated at Rs. 7 crore and later revised to Rs. 23 crore. Now, the project cost is estimated at Rs. 80 crore.

Despite spending a huge amount, there had been no physical progress under the scheme. The department would initiate action against those who misappropriated funds on the receipt of inquiry report, he said.

The department would explore the possibilities of lifting water from the Berthi reservoir to supply drinking water to Madikeri, he said.

Fresh proposal

Mr. Sorake said that the government has submitted proposals worth Rs. 5,200 crore to the Centre for the second phase of work under Jawaharlal Nehru Urban Renewal Mission (JNNURM) in Bangalore and Mysore cities.

Admitting irregularities in the execution of work in the first phase in these two cities, he said that the government was yet to decide whether to order a probe into the alleged irregularities.

Recently, the State received 2,100 buses of the 10,000 buses planned for other select cities across the country. More tier-II and tier-III cities would be brought under Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT), he said.

A sum of Rs. 1,000 crore has been reserved in the State Budget for the launch of the third phase of the Chief Minister’s Nagarotthana scheme, Mr. Sorake said.

 

BBMP likely to impose commercial tax on PG accommodations

Wednesday, 30 October 2013 04:47 administrator
Print PDF

The Hindu            30.10.2013

BBMP likely to impose commercial tax on PG accommodations

Yediyur councillor N.R. Ramesh says there are more than 8,000 PG hostels in the city, but BBMP’s Revenue Department puts the figure at 272.— File Photo: V. Sreenivasa Murthy
Yediyur councillor N.R. Ramesh says there are more than 8,000 PG hostels in the city, but BBMP’s Revenue Department puts the figure at 272.— File Photo: V. Sreenivasa Murthy

The Bruhat Bangalore Mahanagara Palike (BBMP) is once again considering bringing paying guest accommodations and service apartments under the commercial tax bracket.

During the BBMP council meeting here on Tuesday, Yediyur councillor N.R. Ramesh pointed out that there were more than 8,000 PG hostels in the city. If all the PG accommodations are brought under the commercial tax net, BBMP can raise revenue up to Rs. 60 crore every year, he said, adding that action should be taken against officials who do not update tax-related records and fail to collect taxes on time.

However, the BBMP’s Revenue Department claimed that there were only 272 PG hostels in the city, and that property tax totalling from which Rs. 31.17 lakh was being collected from their owners every year.

The other councillors, including Opposition Leader B.N. Manjunath Reddy and the former Mayor S.K. Nataraj agreed with Mr. Ramesh, and said, “Several times in the past also Mr. Ramesh had suggested ways to increase tax revenue, but officials have not acted on it.”

Mayor B.S. Sathyanarayana said revenue and tax inspectors had been asked to visit at least 25 properties each day to check whether tax has been paid. “But nothing much has been done in this regard,” he lamented.

BBMP Commissioner M. Lakshminarayan said under the Self Assessment Scheme, PG hostels are classified as tenanted accommodations.

He added that he would direct the assistant revenue officers to look into the list of properties provided by Mr. Ramesh and submit a report in a months’ time.

Tenders

Nagapura councillor S. Harish, who brought to light several instances where officials allegedly wasted tax payers’ money by issuing tender notifications in newspapers. He said many tender notifications had been published as classified advertisements in newspapers without the officials bringing it to the notice of the Commissioner.

According to the Karnataka Transparency in Public Procurement Act, there is no need to float tenders and publish notifications for works worth up to Rs. 2 lakh.

However, there were instances where officials floated tenders for works costing up to Rs. 1 lakh.

“In many instances, the cost of the tender notification is more than the actual work itself. In many instances, soon after the notification is published, a corrigendum is also released,” he said.

Mr. Harish claimed that last year, the BBMP spent Rs. 5.29 crore on notifications and an additional Rs. 52 lakh on getting corrigenda printed. “What is the reason behind the officials placing so many tender notifications? Is there any ulterior motive?” he asked.

He added that while a tender notification can be published only thrice, there were instances when BBMP officials had got it published nine times as they had not got any response.

 
More Articles...


Page 231 of 686