Revised SAS draws flak from FKCCI

Revised SAS draws flak from FKCCI
D H News Service,Bangalore:
The Federation of Karnataka Chambers of Commerce and Industry (FKCCI) on Saturday alleged that the Bruhat Bangalore Mahanagara Palike (BBMP) is bent upon introducing the CVS (Capital Value System) of tax through the back door.


Addressing a press meet here, FKCCI president D Muralidhar said the notification issued by the Urban Development Department on the revised SAS scheme, with the concept of ‘Unit Area Value’ (UAV) is nothing but an attempt to push ahead the CVS.

“The BBMP has called for public objections, even as the details of the existing scheme, like the unit area and zoning, are ambiguous. There are many ways of raising revenue. The proposed measures impose burden on the honest tax payer. The bureaucracy is holding the residents of Bangalore to ransom,” Muralidhar alleged.

Opposition

Stating that the trade and industry fraternity is agitated over the BBMP’s move, the FKCCI chief added, “Transparency is something the BBMP chooses to ignore.“

Questioning the rationale of hiding details, S Ejaz Ahmed Sait, Chairman (Civic Affairs and Infrastructure), FKCCI, said “Ministers R Ashok and Katta Subramanya Naidu had given assurances that SAS will be retained and an increase will be effected, over and above the existing rates, only if tax collection is not at the expected level. They had said that property tax structure will revised once in five years under the old SAS. Then why is the BBMP bent upon thrusting CVS indirectly?”

FKCCI has also flayed 15 pc increase in property tax, with a discretionary power of increasing up to 30 per cent by the BBMP commissioner.

The trade body has said that the views of 250 resident welfare association and FKCCI should not be ignored by the BBMP.

THEIR DEMANDS

* Hold fresh public hearing before new law is effected
* Continue existing SAS introduced in 2000
* Same rates, zoning and depreciation not to change
* Review property tax once in five years