CVS cap likely at twice SAS tax

CVS cap likely at twice SAS tax
By Afshan Yasmeen,DH News Service,Bangalore:
In a bid to make the controversial Capital Value System (CVS) less taxing on citizens, the Bruhat Bangalore Mahanagara Palike (BBMP) is likely to fix an upper limit on CVS rates that is not more than 1.5 to 2 times of the tax hitherto paid under the Self Assessment Scheme (SAS).


Following the State government’s directive to stipulate a ceiling for rates under CVS, BBMP officials are working overtime to arrive at a reasonable limit. Top official sources told Deccan Herald on Saturday that the ceiling would ensure that the property owners are not over-burdened.

The officials are toying with two ideas — whether to introduce a uniform cap for all properties, or fix a category-wise limit. “Though we are keen on introducing a uniform cap, it is for the government to decide on it,” the sources said.

The Palike officials are working on various examples of property tax to figure out the range of differences between SAS and CVS. “We will soon arrive at a final rate for the ceiling and place it before the government for approval,” the sources said. The sources said the April 2 deadline announced by Commissioner S Subramanya for the release of information booklets and calculation sheets on CVS could be extended by a few days.
“We are still working on how to make it acceptable to the people. The April 2 deadline is likely to be extended up to April 7,” the sources said. Following criticism from citizens that the tax rates under CVS would be more than five to six times of what they are paying under SAS, the Housing and Urban Development Department had directed the BBMP to consider fixing a limit on CVS rates, similar to the two-and-a-half times cap under SAS.
Under SAS, if taxes shot up abnormally, property owners could just pay two and a half times more than what they were paying earlier, or the actual taxes, whichever is less.



*Ceiling will not burden taxpayers
*Officials undecided over uniform cap or category-wise limit
*CVS booklets may be released by April 7
*Final rate to be sent for government approvalCVS cap likely at twice SAS tax
By Afshan Yasmeen,DH News Service,Bangalore:
In a bid to make the controversial Capital Value System (CVS) less taxing on citizens, the Bruhat Bangalore Mahanagara Palike (BBMP) is likely to fix an upper limit on CVS rates that is not more than 1.5 to 2 times of the tax hitherto paid under the Self Assessment Scheme (SAS).


Following the State government’s directive to stipulate a ceiling for rates under CVS, BBMP officials are working overtime to arrive at a reasonable limit. Top official sources told Deccan Herald on Saturday that the ceiling would ensure that the property owners are not over-burdened.

The officials are toying with two ideas — whether to introduce a uniform cap for all properties, or fix a category-wise limit. “Though we are keen on introducing a uniform cap, it is for the government to decide on it,” the sources said.

The Palike officials are working on various examples of property tax to figure out the range of differences between SAS and CVS. “We will soon arrive at a final rate for the ceiling and place it before the government for approval,” the sources said. The sources said the April 2 deadline announced by Commissioner S Subramanya for the release of information booklets and calculation sheets on CVS could be extended by a few days.
“We are still working on how to make it acceptable to the people. The April 2 deadline is likely to be extended up to April 7,” the sources said. Following criticism from citizens that the tax rates under CVS would be more than five to six times of what they are paying under SAS, the Housing and Urban Development Department had directed the BBMP to consider fixing a limit on CVS rates, similar to the two-and-a-half times cap under SAS.
Under SAS, if taxes shot up abnormally, property owners could just pay two and a half times more than what they were paying earlier, or the actual taxes, whichever is less.



*Ceiling will not burden taxpayers
*Officials undecided over uniform cap or category-wise limit
*CVS booklets may be released by April 7
*Final rate to be sent for government approval