Friday, February 25, 2005

BMP to impose infrastructure and SWM cess

BMP to impose infrastructure and SWM cess

Both measures, passed by the BMP Council are said to be a follow up exercise to amendments brought into Karnataka Municipal Corporations Act.

Deccan Herald

The Bangalore Mahanagara Palike (BMP) Council on Thursday set the citizens on a warm-up lap for the season of budgets by approving the proposals on an annual ‘basic infrastructure cess’ on vehicles and a monthly ‘cess on solid waste management (SWM)’.

The cess on vehicles will pay for the transport infrastructure like roads and flyovers the BMP provides to make the drive and ride in the city easier. The cess on waste will pay for BMP’s role in the disposal of waste. Both measures are a follow up exercise to the amendments made in the Karnataka Municipal Corporations Act.

The annual basic infrastructure cess on vehicles is applicable to vehicles registered in the BMP limits and the proposal had in fact figured in the BMP’s budget proposals for the last three years.

Self-assessment mode

To facilitate payment of the cess through the self-assessment mode, the application forms and challans will be made at all BMP offices, citizen service centers, authorised banks, and if necessary in petrol bunks in the city too.

In the case of new vehicle registrations, the BMP proposes to tie up with the regional transport authorities or with vehicle insurance firms, Commissioner Jothiramalingam said. The cess on vehicles shall be paid before 90 days from the beginning of the year.

Those making the payments in the first 30 days will get a five per cent waiver. Payments made after 90 days will attract 2 per cent additional cess for every month of delay.

Varying slabs have been fixed on SWM cess for residential units, commercial establishments, industries, hospitals, hotels, kalyan mantaps and others. (For details refer box)

The responsibility for collection of SWM cess will be entrusted to the contractors who manage the waste collections or to residents welfare associations.

Property tax assesses of BMP can remit their SWM cess along with property tax returns. A waiver of 5 per cent may be earned by making the payments for all the 12 months at one go, before the first 30 days of the year.

Meanwhile, heeding to the suggestions made by the BMP members, Mayor R Narayanaswamy has said that he will speak to the chief minister seeking exemption of two wheelers and three wheelers from the ambit of infrastructure cess and the exemption of SWM cess for residential units of size below 40 x 60 ft.

The BMP council on Thursday also approved a proposal recommending to the State government, an increase in the service tax levied on private educational institutions who are exempted from property tax. These institutions will be charged service tax at the rate of 50 per cent of their property tax estimate against the presently charged 25 per cent, the BMP council’s proposal said.


Infrastructure cess on vehicles (Annual)
Two-wheelers: Rs 50
Light motor vehicle / three-wheelers: Rs 100
Four-wheeler: Rs 300
Medium and heavy vehicle/ passenger transport vehicles: Rs 400
Goods transport vehicles: Rs 500

Cess on solid waste management: (Monthly)

Residential buildings:
Upto 1000 sq ft plinth area: Rs 10
1001sq ft to 3,000 sq ft: Rs 30
3001 sq ft and above: Rs 50

Commercial buildings:
Upto 1000 sq ft: Rs 50
1001 sq ft to 3000 sq ft: Rs 100
3001 sq ft and above: Rs 200

Industrial buildings:
Upto 1000 sq ft: Rs 100
1001 sq ft to 3000 sq ft: Rs 200
3001 sq ft and above: Rs 300

Hotels, Kalyan Mantaps and Nursing Homes:
Upto 1000 sq ft: Rs 300
1001 sq ft to 3000 sq ft: Rs 500
3001 sq ft and above: Rs 600


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