A general view of Bengaluru
Credit: DH Photo
Bengaluru: Come April 1, property taxes may increase in Bengaluru as the Karnataka government has approved the collection of user fee from all domestic waste generators in the city.
The addition of the user fee component to the property tax is likely to draw flak, as it will place a financial burden on citizens whose monthly expenses have already gone up. The development comes just a month after Namma Metro revised its fare by 45 to 50 per cent.
The Bengaluru Solid Waste Management Ltd (BSWML), which had submitted a request to charge the user fee in November last year, is yet to issue an official order in this regard.
Notably, the Urban Development Department — which reports to Deputy CM DK Shivakumar — has given its consent to charge the user fee. The fee is imposed on the grounds that the BSWML is providing services such as door-to-door collection of waste and its disposal, albeit unscientifically.
According to the proposal, the built-up area of a building will determine the extent of user fee for property owners. In total, there are six different slabs. A building up to 600 sq ft will be required to pay a minimum fee of Rs 10 per month, which totals Rs 120 per year. A maximum fee of Rs 400 per month will be levied on buildings larger than 4,000 sq ft, totaling Rs 4,800 annually.
This is expected to increase the annual property tax significantly. According to BSWML’s estimates, the revenue from the user fee is expected to be around Rs 600 crore per year, but it could be much higher.
The government has also allowed the BSWML to charge a user fee of Rs 12 per kg of waste generated by bulk waste generators, such as apartment complexes or large commercial institutions, that do not have an empaneled agency to process the waste or do not have in-situ waste processing.
Officials said the Solid Waste Management (SWM) Cess — which already exists as one of the components in the property tax — will stay on as it is collected for the upkeep of public places including sweeping of streets.