JOIN USThe Bruhat Bengaluru Mahanagara Palike (BBMP) has decided to increase property tax to boost its coffers by at least Rs 500-600 crore a year.
But the new rates will come into force only in April next year, thus giving property owners a short-term relief.
The decision on revising the tax was taken a few weeks ago, a senior Palike official said on the condition of anonymity. “We are yet to prepare a draft copy and work out the modalities. We have written to the State government to approve the hike. The new rates are likely to come into force next April,” the official said.
The civic agency hasn’t increased the property tax since 2008.
New rates
The new rates per square foot will be fixed on the basis of six taxation zones (A, B, C, D, E and F), according to Palike officials.
Once the new rates come into force, the Palike hopes to earn Rs 500-600 crore more per year.
While the Bruhat Bengaluru Mahanagara Palike Administrator, TM Vijaya Bhaskar, wasn’t available for comment, Palike spokesperson S S Khandre said that the proposal once sent to the government was most likely to be accepted.
Hike discussed last year
The Bruhat Bengaluru Mahanagara Palike Council had discussed the property tax hike last year but didn’t approve it, said Kacharakanahalli corporator Padmanabha Reddy.
“Most corporators opposed it, saying it will burden the common man. The council had managed to approve revising property tax for Paying Guest (PG) accommodations to bring them on a par with commercial buildings,” Reddy said.
The Palike has collected property tax of about Rs 140 crore through the online mode for this financial year. “The number of people using online payment system for paying taxes is increasing day by day,” said Venkatachalapathy M, Deputy Commissioner (Revenue), Bruhat Bengaluru Mahanagara Palike .