BBMP proposes 20 to 25pc hike in property tax

The cash-strapped Bruhat Bangalore Mahanagara Palike (BBMP) has proposed to increase property taxes by 20 per cent for residential and 25 per cent for commercial buildings.

It has also proposed to realign the property tax zoning system. For example, areas presently in B Zone can be categorised as A Zone or a property in F Zone may be brought into E Zone. The proposal will be tabled before the Palike Council on February 26.

The proposal states that the Karnataka Municipal Corporation (KMC) Act mandates for a tax hike somewhere between 15 per cent and 30 per cent once in three years.
The last time the BBMP revised the taxes was in 2008 when the Self Assessment Scheme (SAS) based on Unit Area Value (UAV) was introduced.

The BBMP’s Taxation and Finance Committee, in its proposal, has justified revision of taxes saying that it should have taken place in April 2011 as per the KMC Act. Due to opposition from the Residents’ Welfare Associations, the proposal was dropped. Since no revision has taken place in the last five years, it has become necessary to revise taxes, the committee has said in its proposal.

It says that increasing the taxes by 20 per cent for residential and 25 per cent for commercial buildings was approved by the BBMP commissioner in 2011.

CAG approval

The recommendation for hike in the taxes, which will be tabled in the council for approval, cites the Comptroller and Auditor General’s report. The report has allegedly taken a dig at the Palike administration for not revising the property taxes in 2011 even though the KMC Act stipulates it.

Palike’s Taxation and Finance Standing Committee Chairperson K A Muneendra Kumar set aside the fear about hike in taxes, saying that the tax revision proposals are routine administrative exercises.

He said: “We are not imposing the tax revision on people. It is just a proposal, which will be discussed in the council. It will be implemented only if the