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Palike moots tax on telecom towers

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The Deccan Herald  05.08.2010

Palike moots tax on telecom towers

Bangalore, August 4, DHNS:

Property owners hosting telecom towers will have to cough up Rs 1.44 lakh a year if the Bruhat Bangalore Mahanagara Palike (BBMP) has its way with its proposal to bring these towers under tax ambit.

This is the second time Palike is trying to fill up its kitty by taxing property owners hosting telecom towers. However, telecom firms, had managed to get a stay order on the proposal when it was first floated last year, as the property owners had demanded the companies to pay the tax money.

The fresh move comes in the wake of BBMP expecting the stay order to be vacated in the coming months. Speaking to Deccan Herald Bangalore City Mayor S K Nataraj said: “We are planning to bring all the telecom towers in the City under our tax ambit.”

BBMP sources said Palike had decided to charge Rs 12,000 per month for each tower and were in the process of bringing the proposal before the Council.

“However, there is no specific timeline on when it could come before the Council as it is subject to the stay order being vacated,” sources added.

Besides, the Palike is also expediting the process of taxing the paying guest accommodations (PGs) in the City. Nataraj said: “Such accommodations have assumed commercial undertones now and are exploiting resources like water, electricity etc by paying for at residential rates. Palike is in the process of assessing the various parameters under which such places could be taxed.”

Paying guest accommodations will soon have to face stricter registration laws among other measures from the Palike, sources said.

Last Updated on Thursday, 05 August 2010 08:28