Adopt minimum value method

Sir,

The Capital Value System (CVS) being implemented by the Bruhat Bangalore Mahanagara Palike (BBMP) to determine property tax in Bangalore imposes a larger burden on citizens on two counts.

First, since the valuation is based on the guidance value of properties declared by the State government from time to time, it means even if the tax rate is kept constant, absolute tax can go up by the revision of guidance value. Secondly, the depreciation rates permitted under the earlier scheme seem to have been decreased under the CVS.

This double whammy can be mitigated, if the BBMP adopts the written down value method of depreciation as per the Income Tax Act subject to the minimum value of property for tax purpose being fixed at say, 10 per cent after depreciation. This seems to be an equitable solution between the revenue considerations of the BBMP and imposing a non-exploitative tax regime on the citizens.

Also, such a system satisfies all the criteria laid down by the Supreme Court related to property tax.

P V Maiya
Bangalore

Wrong direction

Sir,

The new property tax system introduced by the BBMP is in a wrong direction. How can the BBMP levy different taxes in different places? When Income Tax is levied, it is not done based on the company or location you work but is based on the annual income. Similarly, tax from the BBMP should be based on the site or plinth area of the property and the cost of construction with due provision for depreciation and it should not be based on sale value.

U N Bhat
Bangalore

Defer CVS

Sir,

The decision of the BBMP to implement CVS is shocking. The bureaucrats should not take a policy decision in the absence of a popular government. The argument that this legislation has the sanction of the legislature is not convincing. The move would be a major blow to most owners, as they would have to shell out an amount, nearly over five times the present tax. Hence the implementation should be deferred untill a new government takes charge.

M Swayam Prakash
Bangalore

Draconian law

Sir,

The basic factor of computation in CVS is the resaleable value of the property, which is a draconian provision as far as middle and lower middle class citizens are concerned. They have invested their life-savings in the 70’s and 80’s to build and own a house here.

For such people, resaleable value does not arise, as they do not intend to sell their only house, where they still live. Just because of the IT boom and consequent escalation in land values, same principles cannot be applied to all sections of society.

R S Rao
Bangalore

A prophet

Sir,

The man revered as a guru by astronauts, whose writings spread over scientific discovery to science fiction, is no more. Arthur C Clarke was a prophet who foresaw the future and lived in his life time to see it all come true.

Clarke’s works, which led to the invention of global satellite systems in use today, brought him numerous honours.

The geostationary orbit at 36,000 kilometres above the equator is named The Clarke Orbit by the International Astronomical Union. Even the illness that struck him in 1995 did not dampen his spirit and his writings continued to straddle time and space.

Sharath Ahuja
Bangalore

Justifying violence

Sir,

The article Saving secularism by Nilotpal Basu (DH, Mar 21) was truly frightening as it tried to defend the murders committed by his party activists in Kannur. It was chilling to see Basu’s eloquent justification of the violence.

The killing of hapless citizens by ruthless political outfits leaves one question, “ Why does the agony and the suffering that befalls the dependents of those killed for political reasons never sadden the media?”

Prasanna V
Bangalore