Cabinet panel for re-introduction of SAS

Cabinet panel for re-introduction of SAS


ENS
02 Oct 2008 10:31:00 AM IST

BANGALORE: Bowing to resistance from citizens against the Capital Value System (CVS) of property tax, the Cabinet committee has recommended re-introduction of Self Assessment Scheme (SAS) in the City.

Committee chairman and Transport Minister R Ashok, told reporters on Wednesday that the committee, after weighing the pros and cons of the CVS, had unanimously recommended the scrapping of the new system and the re-introduction of SAS.

CVS, which was first mooted seven years ago, was finally introduced by the Dharam Singh led Congress-JD(S) government.

Ashok said that the recommendation would be placed before the next Cabinet meeting for approval. “Once cleared, a government order would be issued within a fortnight,” the minister said.

Though the BBMP had asked for a 30 per cent increase over the earlier SAS rates, the panel decided to recommend only 20 per cent hike, Ashok said.

He said there would not be a burden on the citizens under SAS, as they have to pay the same amount that they used to pay towards property tax in the previous fiscal or even less than that.

He said that the revised SAS rates would help increase BBMP's revenue as over 15 lakh properties would be covered this year compared to the earlier seven lakh properties. “If all these properties are covered, we expect to mobilise about Rs 1,500 crore in tax,” he said.The panel has also recommended to restrict concession to just 50 per cent on property tax for residential buildings used only by owners. As per the existing rules, buildings, including commercial spaces used by owners, were getting concession.

He said that shopping malls and multiplexes in the City, would also be brought under the scheme.

On regularisation of unauthorised structures on revenue sites and in private layouts, the Minister said the government would soon take a pro-people decision.