Capital Value System (CVS) of property tax, which will come into effect from April 1, is worrying many senior citizens.
Under CVS people might have to pay five to six times more than what they are paying under the existing Self Assessment Scheme (SAS), which is based on the annual rental value, here is a case wherein the tax of a commercial property on M G Road has increased from Rs 1,340 to Rs 1,20,000.
V P Chengalaraya Naidu, a senior citizen, who owns a small property on M G Road has been informed by BBMP officials that his tax had increased to Rs 1,20,000 under the new system. “I was shocked and went from pillar to post to get this clarified. Richmond Town Assistant Revenue Officer told me that I had to pay the sum under the new system. The tenant of my property, which I have inherited from my ancestors, does not pay the rent as the property is under litigation. I do not even get any pension. How will I pay a huge sum?” Mr Naidu told Deccan Herald.
The BBMP has fixed the rate at 0.25 per cent of the capital value for residential self-occupied buildings and 0.5 per cent for rented residential buildings. The rate for industrial and commercial properties has been fixed at one per cent and two per cent of the capital value respectively. For vacant sites, it has been fixed at 0.2 per cent.
Opposing the new system, the All India Non-Pensioned Senior Citizens Retirees’ Association has urged Governor Rameshwar Thakur to withdraw the scheme. “We are non-pensioned retirees and are struggling to make two ends meet. It is impossible for us to pay such a heavy tax.” Ernest Abraham of the Association said.
The Federation of Residents’ Welfare Associations of Jayanagar will meet on Sunday to dicsuss the issue. “We will petition the Governor to withdraw the scheme,” Air Commodore T M M Raghavan, a member of the Association said.
The proposed CVS taxation is a blatant misuse of governance. The gevernment bodies like the BBMP are supposed to be streamlining their operations from the tax that they are earning right now instead of pouncing on the citizens with one tax or the other. Apparently, the BBMP may not have done their home work properly for the CVS. This is visible as they are unable to tell exactly how the CVS has to be calculated. It is high time the CVS is scrapped completely.
by YASEEN, MOHAMED on 3/15/2008 11:49:18 PM
IS IT ONLY THE SENIOR CITIZENS WHO ARE WORRIED ABOUT CVS AND NOT OTHERS?
NOW, NO DACOITS ARE REQUIRED TO ROB THE CITIZENS. IT IS SHAME TO TAKE THE CITIZENS FOR A RIDE. SHEER NONSENSE IN IMPLEMENTING CVS.
WAKE UP CITIZENS, WAKE UP NOW.
by Dr.Murthy on 3/15/2008 11:11:18 PM
The plight of pensioners is no better. Even with Rs.10,000 pension, with no other income, it impossible to pay the huge tax. Because Bangalore has expanded and we happen to be in the interior, the value is high and hence we are required to pay huge tax.
Let us assume we pay, what do we get in return. The BMP services are not going to improve ten fold. all the money will be used by corporators for trips abroad to find out how they it should function. There is no accountability for BMP.
