Tuesday, December 30, 2008

9 months over, BBMP yet to deliver

9 months over, BBMP yet to deliver
DH News Service, Bangalore:

Nine months of this financial year passed for the Bruhat Bangalore Mahanagara Palike (BBMP) without tax collection. Yet, the BBMP officials and Transport and Bangalore incharge Minister R Ashok are not ready with notification. The latest assurance is it would be ready within a week.

“Final shape to the property tax structure has been given. We thought of giving some more relief... some concession to the Bangaloreans, so the property tax collection was delayed,” said Ashok on Monday.
Briefing reporters after a meeting with the BBMP officials here, Ashok said the Palike will issue the notification within seven days after which people will have 21 days time to lodge their complaints or suggestions. Tax collection will begin after this period. The taxes can be paid in two installments, said the minister.
The minister added that the recommendations of the sub-committee were approved by the Cabinet. The committee recommended to keep the gross increase in taxes within 20 per cent, to remove cap of 2.5 times available under the self valuation scheme, to provide 50 per cent rebate for owner occupied properties and not to increase vacant land space in one of the six zones- F Zone.

One more zone

Ashok indicated that there will be one more zone in addition to six zones for the newly included 110 villages in the BBMP limits where the taxes will be as per the old rates. He said that the majority of people living in the new zone cannot afford high tax rates. He added that there will be a concession of five per cent for those paying taxes early. Also the cess rate has been cut from 34 per cent to 24 per cent. Besides, the benefit of depreciation of old building will be up to 70 per cent, Ashok said.

“Under no circumstance, the increase in tax will be more than 20 per cent as compared to previous years,” the minister added.

He also informed reporters that presently 6.5 lakh properties in old zones of Bangalore are taxed whereas around 5.5 lakh properties in the new zones will pay the taxes. Illegal structures in the new zones will also be taxed but it will not mean that the government is regularising it by taxing it, Ashok said.

Depreciation benefit

The data given by the minister show that the buildings which are older than 18 years will get a depreciation benefit of 21 per cent. If the owners of such old properties avail the 5 per cent concession for paying tax early, they would have to pay only four per cent extra property tax when compared to last year.

The matrix calculated by the minister for 17 years suggested that the per unit value of the residential property in Zone A will be Rs 3, Rs 2.40 in Zone B, Rs 2.16 in Zone C, Rs 1.80 in Zone D and Rs 1.44 in Zone E and Rs 1.20 in Zone F.

Property details

The tax will be based on the property details given by the owner but if the details are found to be wrong then the property owner will have to pay double the tax as penalty for lying to the BBMP authorities.
The government is also contemplating IT exemption to the property tax


Post a Comment

<< Home