Urban News

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

ELCIA to resist move to bring Electronics City under BBMP

Print PDF

The Hindu   02.08.2012

ELCIA to resist move to bring Electronics City under BBMP

Staff Reporter

‘We’ve been managing this estate for almost 20 years and we’ve done a decent job’

THE AREA HAS GOT IT:Broke BBMP is eyeing the Rs. 300 crore Electronics City will bring by wayof taxes.— FILE PHOTO: Satish Badiger
 
THE AREA HAS GOT IT:Broke BBMP is eyeing the Rs. 300 crore Electronics City will bring by wayof taxes.— FILE PHOTO: Satish Badiger

On Tuesday, the cash-starved Bruhat Bangalore Mahanagara Palike (BBMP), in an attempt to beef up its coffers, passed a resolution to include all three stages of Electronics City and the villages surrounding it under its ambit so that it can extract Rs. 300 crore in taxes from this prime business and industrial area.

A day later, the Electronics City Industries Association (ELCIA) has declared that it will resist the move.

As per the BBMP council’s proposal, areas such as Shikaripalya, Thirupalya, Neeladrinagar, Bettadasapura, Konappana Agrahara, Dodda Togur, Gollahalli, Balaji Extension, Hulimangala, Govinda Shettypalya, Krishna Reddy Extension, Neo Town, Shanthipura and Veerasandra Industrial Area will come under the palike’s jurisdiction.

Major hub

The issue came up at Tuesday council meeting with Yediyur councillor N.R. Ramesh pitching the idea that Electronics City, which houses around 187 major electronics and IT companies, 26 international educational institutions, residential apartment complexes and three-star hotels spread over a total built-up area of close to 3 crore sq. ft, was benefiting from the infrastructure provided by the BBMP.

With more malls and apartments coming up, the potential revenue from the newly added areas for the palike would be almost Rs. 300 crore, he said.

This sparked off more suggestions to include far-flung areas under the palike, among which are areas around the Bengaluru International Airport.

‘Out of the question’

ELCIA’s contention is that the BBMP is not involved in any activities in the area. Its chief operating officer (CEO) N.S. Rama told The Hindu any proposal other than converting Electronics City into an industrial township was out of the question.

“We have not received any communication from the BBMP. All that we know is through the media. But we don’t know what infrastructure the BBMP is talking about. Even the elevated road was not the BBMP’s contribution. We have been managing this estate for almost 20 years now and we have done a decent job,” she said.

Tax payment

Asked to comment on the allegations of some councillors that the resistance to come under the BBMP was only to avoid paying the property tax to the corporation, Ms. Rama said: “We are paying tax to the panchayat.”

She added that ELCIA would soon write to the government expressing its reservations about the proposal.

  • BBMP council passed a resolution in this regard on Tuesday
  • BBMP is not involved in any activities in the area: ELCIA 
Last Updated on Thursday, 02 August 2012 05:50
 

Court extends stay on local body tax

Print PDF

The Times of India   01.08.2012

Court extends stay on local body tax

NASHIK: The Bombay high court on Tuesday extended the stay on the state government's decision to introduce local body tax (LBT) within the limits of the Nashik Municipal Corporation (NMC) until August 9 which is also the scheduled date for the the next hearing.

The petition filed by Maharashtra Navnirman Sena (MNS) corporator Gulzar Kokani and Sena opposition leader in the NMC Sudhakar Badgujar, against the state government's decision to introduce local body tax (LBT) as a substitute for octroi in Nashik, was heardd on July 31 in the Bombay High Court.

In its order, the bench of high court judges, Mrudula Bhatkar and S S Bobade, stayed the state's decision to of introduce LBT in the city. Earlier, both MNS and Shiv Sena filed separate petitions in the High court. But both petitions were clubbed as one as both petitions highlighted the same points.

"As per rules, any new tax system must be announced by February 20, before the commencement of the new financial year and the municipal commissioner must publicly announce the new tax rates and get it passed at a special general body meeting. But the state government has not resorted to any such procedure," said the MNS corporator Gulzar Kokani.

Badgujar explained why the introduction of LBT could hamper the financial situatin of the NMC. "The revenue collected through sales tax from Nashik district is around Rs 1,100 crore, including Rs 800 crore from Nashik city. Sales tax is collected in four slabs 5% , 12%, 20% and 25%. At this rate, revenue of only Rs 299 crore will be collected through LBT within the limits of the NMC. The way the NMC administration is collecting octroi, it is expected to collect Rs 700 crore in the current financial year. The sudden introduction of LBT will affect the financial position of the NMC," Badgujar said.

"Moreover, the state government had cancelled octroi in some municipal councils in the state on May 1, 1999, and had started giving administrative grant to compensate the losses caused due to the cancellation of octroi. Since then, the state government has been giving annual administrative grant to these municipal councils, with 10% rise in the grant every year. But in Nashik, the state government cancelled octroi and introduced LBT as an alternative. Actually, we believe that the state government must have taken the same decision for Nashik, which they had taken with the other municipal councils in the year 1999," Badgujar added.
Last Updated on Wednesday, 01 August 2012 09:35
 

Pay property tax by Nov 1

Print PDF

The Times of India   01.08.2012

Pay property tax by Nov 1

CHANDIGARH: Two months after re-imposing property tax in Haryana, the state government has given 90 days to property owners to sort out the issues of tax remission and self assessment. From November 1, civic bodies will begin serving demand notices. On June 1, the Haryana government had announced revival of property tax after rationalizing the formulas calculating it.

Haryana has around 20 lakh property tax payers, 2.5 lakh and 2.45 lakh from national capital region (NCR) of Gurgaon and Faridabad and 68,000 and 60,000 from the state capital region (SCR) of Panchkula and Ambala.

While the payers can assess tax under the self-declaration facility, officials in civic bodies have been asked to complete surveys under the new formula of property tax devised by government a month ago.Financial commissioner, urban local bodies (ULB) department, Ram Niwas, said, "For the current cycle, we have already displayed the formulas on our website as well as the collector rates".
 




From November 1, the civic bodies will start serving demand notices on the basis of surveys carried out by them area, he added. In October 2008, Haryana chief minister Bhupinder Singh Hooda had scrapped the tax in urban areas to win over voters with an eye on elections, but the Centre stopped giving matching grants of over Rs 700 crore under the JNNURM.
 


Faridabad municipal commissioner D Suresh said the MCF has already started collecting property tax. Panchkula MC secretary O P Sihag said the residents were seeking help in calculation of property tax. "We are in the process of finalizing the agency that will carry out the survey for us. We are also trying to help those opting for self-declaration."
Last Updated on Wednesday, 01 August 2012 09:17
 


Page 113 of 265