Citizens caught in a mesh of cess

Citizens caught in a mesh of cess
Deccan Herald

A City denizen owning a 30x40 sq ft property and a two-wheeler will have to put aside anywhere between Rs 300 and 600 just to pay the additional cess proposed to be imposed on him/her by BBMP in 2007-08.

With Bruhat Bangalore Mahanagara Palike’s expenditure bloating, the annual budget of the average Bangalorean too is set to get bigger.

A City denizen owning a 30x40 sq ft property and a two-wheeler will have to put aside anywhere between Rs 300 and 600 just to pay the additional cess proposed to be imposed on him/her by BBMP in 2007-08.

This is how it works out. The Storm Water Drain Cess (SWDC), which is 10 per cent of total property tax amount, will be around Rs 250, assuming that the property is located in an average residential locality like Vijayanagar (annual property tax is around Rs 2,500 here).

Solid Waste Management Cess (SWMC) is pegged at Rs 30 for properties between 1,000 sq ft and 3,000 sq ft.

If it is assumed that the property owner also possesses a two-wheeler, she/he will have to pay Rs 50 towards Infrastructure Cess (IC). In case a 30/40 sq-ft house owner possesses a four-wheeler, the IC would go up to Rs 300.

These calculations vary with the dimension, location and age of the property. In the case of vehicles, the cess is calculated according to the category of vehicle. This also applies to those owing flats.

To ensure effective recovery of all these cess, BBMP is planning to enter into tie-up with other utility providers. While Bangalore Water Supply and Sewerage Board has agreed to collect SWDC and SWMC, efforts are on to tie up with insurance companies to collect the IC. This is being done to ensure 100 per cent collection of the cess, official sources said.

In any case, if BBMP’s proposals are okayed by the government, Bangaloreans will be paying a total of six different types of cess compared with residents of other towns of the State.

Local bodies in the State, including the erstwhile BMP, have been collecting three types of cess -- Beggary Cess (3 per cent of property tax), Health Cess (15 per cent) and Library (6 per cent).

The Government recently abolished the Education Cess (which was 10 per cent of property tax).