Urban News

  • Increase font size
  • Default font size
  • Decrease font size
Taxation

CM told to stay new property tax system

Friday, 15 February 2013 11:00 administrator
Print PDF

The Times of India                   15.02.2013

CM told to stay new property tax system

MUMBAI: With voices of dissent against the new property tax regime introduced by the Brihanmumbai Municipal Corporation (BMC) growing, a demand for a stay on the regime has now been made to the state government.

Sanjay Nirupam, member of parliament, north Mumbai, on Thursday asked CM chief minister Prithviraj Chavan to order a stay. Raising the demand during a meeting of MPs convened by Chavan ahead of Parliament's budget session of the Parliament, Nirupam said that citizens across segments were objecting to the rise in property tax bills. under the new regime.

He added that further said that the BMC took three years to finalize the tax rate, but had barely given citizens 21 days to respond to bills. Sanjay Patil, MP, North-East Mumbai, echoed Nirupam's concerns.

Gurudas Kamat, MP, north west Mumbai, meanwhile raised the issue of deemed conveyance for societies. Citing the instance of one residential society in his constituency, Kamat alleged that there was widespread corruption in issuance of deemed conveyance.

Nirupam endorsed Kamat's views. Kamat also criticised the delay in various Metro projects. He blamed the state government for delays in the Churchgate-Virar elevated railway corridor project. Eknath Gaikwad, MP, South Central Mumbai, criticised the delay in the Dharavi redevelopment project.

Union minister and South Mumbai MP Milind Deora was also present for the meeting. Priya Dutt, MP, North Central Mumbai, remained absent.

 

Last Updated on Friday, 15 February 2013 11:17
 

BBMP collects Rs. 6 cr. property tax dues

Friday, 15 February 2013 07:36 administrator
Print PDF

The Hindu                         15.02.2013

BBMP collects Rs. 6 cr. property tax dues

Staff Reporter 

With Bruhat Bangalore Mahanagara Palike (BBMP) officials leaving no stone unturned to recover the property tax dues from defaulters, members of the Standing Committee for Taxation and Finance showed they are not left behind.

On Wednesday, led by committee chairperson K.A. Munindra Kumar, the commitee inspected commercial complexes and malls in Mahadevapura zone to recover tax dues. The members, accompanied by Mahadevapura’s joint commissioner S.N. Gangadharaiah, were able to recover Rs. 5 crore dues.

According to Mr. Kumar, the committee just chose three commercial establishments.

At Tesco, the committee found that the establishment owed the BBMP nearly Rs. 10 crore. On insistence, Tesco immediately cleared 40 per cent of the dues by paying Rs. 4 crore.

Pheonix Mall owes the BBMP Rs. 3.5 crore. The committee directed the officials to issue notice to the developers of the mall and directed them (developers) to pay up dues within a week’s time.

With the news of the “surprise inspections” spreading, Wipro voluntarily paid Rs. 1 crore of the dues it owes to the BBMP. The committee later went to Brindavan Tech Park, which has been rented out to 13 companies.

They found that the tech park owed the BBMP Rs. 23 crore.

The officials of the tech park claimed that the owner was not in town and assured the committee members and BBMP officials of getting in touch with him and clearing the dues soon.

Mr. Kumar said that the BBMP had the potential of collecting nearly Rs. 5,000 crore as property tax.

He conceded that some property owners were misusing the Self Assessment Tax by failing to correctly declare the built up area, if it had been rented out.

Last Updated on Friday, 15 February 2013 07:41
 

Method of property tax calculation challenged

Thursday, 14 February 2013 10:44 administrator
Print PDF

The Hindu                        14.02.2013

Method of property tax calculation challenged

R. Krishna Kumar

The tax is based on notional market value.

The hike of 15 per cent in property tax for properties within Mysore City Corporation (MCC) limits, which has been challenged in court, has revived the debate on the way property tax is calculated and the need for tax reforms.

The present system, the capital value system, has been called “arbitrary” by its critics, as rates are calculated based on the notional market value of property in question.

The market value is assessed on the basis of the guidance value, which is determined by revenue officials, whose objective is to achieve the revenue targets set by the government.

The MCC intends to collect Rs. 93.2 crore from property tax in the coming financial year, while its target for this year is Rs. 77.54 crore.

H.V.S. Murthy, advocate and general secretary, Federation of Tax Payers’ Association, told The Hindu that this method was not based on scientific principles.

The federation wanted the government to amend the Karnataka Municipal Corporations Act, 1976, to delink property tax and market value, because, Mr. Murthy said, the present system posed a danger to property owners here.

The city was witnessing rapid growth and speculation in real estate had led to artificial increase in the prices and market value of properties. Most properties were being bought by NRIs and people with disposable incomes from other cities, notably Bangalore. This runaway escalation in property price had a direct impact on guidance value, which was reflected in the market value of the property.

If property tax was calculated on the basis of this high market value, a majority of the people would find it difficult to pay tax, said Mr. Murthy, who plans to file a writ petition in court.

The solution, according to the federation, is to opt for the unit area value system as in Bangalore, Kolkata and other cities. As per this, property owners are taxed on the rate per unit area fixed by the authorities, instead of the assumed market value, which could be speculative. The increase in property tax comes into effect on April 1, 2013.

Stakeholders have argued that tax collection has not resulted in the corporation providing better civic amenities, and hence, the property tax rate cannot be increased simply because the law provides for it.

Last Updated on Thursday, 14 February 2013 10:48
 
More Articles...


Page 102 of 265