BMP may levy new cess this year

BMP may levy new cess this year; budget next month

The Hindu

BANGALORE, FEB. 7. The scrapping of the controversial pay-and-park scheme may have come as a relief to citizens but the Bangalore Mahanagara Palike (BMP) is considering introducing either the solid waste management cess or the infrastructure cess in its budget for 2005-2006.

At the same time, the BMP has also drawn up plans to hold "tax adalats" and hear people's grievances and resolve them on the spot. The adalats will be similar to those conducted by Bangalore Water Supply and Sewerage Board (BWSSB).

Officials and members of the Standing Committee on Taxation and Finance have started deliberations on the budget and are gearing up to present it during the second week of March.

The BMP Commissioner, K. Jothiramalingam, and his team of officials presented a draft copy of the revenue estimates and receipts to the committee on January 22 for finalising the budget.

The Chairman of the committee, M.K. Gunashekar, confirmed that the draft proposals had been received. "We are conducting department-wise review meetings and will consult leaders of all parties before arriving at the final figures," he told The Hindu on Monday.

Mr. Gunashekar admitted that there was a proposal to levy new cess.

"But the proposal has to be approved by the BMP Council. Though the Karnataka Municipal Corporations Act has been amended to enable the civic bodies to levy cess and introduce the new Self-assessment Scheme of property tax, we are not for imposing all the three at a time and burden the citizens. We may levy one of the three this year," he said.

The BMP had not imposed any new cess in the last four years. "To meet the needs of a growing city and provide infrastructure, we need to mobilise revenue," he said.

Mr. Gunashekar said there was a proposal to hold "tax adalats" to settle disputes regarding abnormalities in levy of property tax and other related problems. "Though the Self-assessment Scheme will be made mandatory after March 31, there are so many cases relating to tax payment filed before the scheme was introduced. If we settle these disputes out of court and collect the tax, our revenue will increase," he added.