Slum Cess may be around 1-2 pc

Slum Cess may be around 1-2 pc

The “slum cess” announced in the State budget on Friday which will be levied on property owners is expected to be around 1 to 2 per cent of the fee collected for sanctioning the building plan.

Proposed by the Karnataka Slum Development Board (KSDB), the cess is meant for carrying out infrastructure activities in the 1,987 authorised slums across the State.
KSDB Chairman P R Ramesh told Deccan Herald that Slum Cess was being collected previously as per a government order of 1995-96. However, the collection was erratic over the last decade.

With project cost in locations like Kodigehalli here hovering around Rs 8.5 crore for a four-storey apartment and considering the mushrooming of high-rise buildings, the government may rake in moolah from the cess.

He justified the cess by stating that there was no permanent source of revenue for projects under the KSDB.

“The urban local bodies (ULBs) are not disciplined while collecting Slum Cess and depositing it with the Board. Hence, we have proposed to the government to amend Karnataka Slum Areas (Development) Act, 1973, and then bring the same to the Karnataka Town and Country Planning Act, 1961, to facilitate mandatory cess collection,” said Ramesh.
Once the Acts are amended, slum cess collection will become mandatory in the 200-odd ULBs and civic agencies across the State. Whichever agency sanctions building plans, they will collect the cess and deposit it with the KSDB.

The agencies may include Bangalore Development Authority (BDA) and Mysore Urban Development Authority.
On date, several civic and government agencies like the BDA, Karnataka Industrial Areas Development Board, Udupi Town Municipality and Mangalore City Corporation are still collecting the cess.

According to KSDB officials, Bruhat Bangalore Mahanagara Palike was also depositing slum cess till 2005, but has stopped collecting since then.
The 2014-15 Economic Survey has suggested that there are no less than 1,504 unauthorised slums in the State. Of the 3,491 slums accounted for, only 1,987 are notified.
The highest number of unauthorised slums in the State is located in Bengaluru Urban district (353), followed by Tumakuru (132) and Mysuru (110). KSDB intends to notify all these unauthorised slums and then provide them with basic amenities.

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