2 pc transport cess on property tax coming

Property owners in urban areas across the State  will have to pay two per cent of their total property tax as Urban Transport Cess, if the State Legislature approves the Karnataka Municipal Corporations and Certain Other Law (Second Amendment) Bill, 2012.

The bill, which the Legislative Assembly passed on Tuesday, envisages revenue raised through cess going into the State Urban Transport Fund, which will be used to finance urban transport initiatives.

The fund will be used for co-ordinated planning and implementation of urban transport projects and their integrated management.

It will also be used for conducting studies, research, promotion and campaigns to encourage the use of public transport, the bill stated.

The government expects to raise around Rs 20 crore per annum through the cess. The bill will now be tabled in the Legislative Council.

Explaining the purpose of imposing a new cess, Urban Development Minister S Suresh Kumar told the House that the government was planning to implement Bus Rapid Transit System in tier-II cities like Hubli-Dharwad.

The Urban Transport Fund with a corpus of Rs 10 crore has already been set up, he added.

The Assembly also passed the Karnataka Municipalities and Certain Other Law (Amendment) Bill, 2012, which seeks to provide 50 per cent reservation to women in urban local bodies, and the Karnataka Motor Vehicles Taxation (Second Amendment) Bill, 2012, seeking to enhance the limit on the price of motor cabs from Rs 10 lakh to Rs 15 lakh for imposing lifetime tax.

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