Mandya CMC hikes property tax by 25 pc

The Mandya City Municipal Corporation (CMC) has provided another shock for residents of Mandya, who are already affected by inflation, by raising property taxes by 25 per cent to both residential and commercial establishments from the current financial year.

Following the implementation of self-assessed property tax measures, the taxes are being increased every three years, between the rates of 15 to 30 per cent. During the year, CMC has decided to increase it by 25 per cent, inconveniencing the residents.

Irked residents have complained that the CMC should have taken measures to increase its revenue by ensuring that the said taxes are collected properly, and by taking measures to prevent the pilferage of the same due to the presence of a large number of illegal establishments. However, the CMC has resorted to this ad-hoc measure.

Of all the buildings constructed in CMC, as many as 19,000 buildings are built illegally, with the occupants of the building evading taxes year after year. CMC has also been lethargic in imposing fines to these buildings.

In the year 2005-06, taxes for residential buildings were raised by four per cent, commercial buildings by six per cent, and empty plots by one per cent. In 2008-09, taxes for residential buildings were raised by 20 per cent, and commercial buildings by 25 per cent. In 2010-11, taxes for both residential and commercial buildings were raised by 15 per cent each.

Under the self-assesed property tax scheme, CMC generates a revenue of Rs 2.27 crore. The increased taxes will generate an additional revenue of Rs 94 lakhs.

The CMC has identified 19,841 buildings, of which about 3,500 buildings were identified for tax collection recently. CMC Commissioner, M N Shashikumar acknowledged that there were several buildings which had not paid taxes from the past several years. “All tax evaders should file their taxes immediately, failing which the CMC will initiate strict measures against them,” he said.

Praveen, a resident of the city criticised the steep raise in property taxes. “The CMC cannot compare commercial and residential establishments in the same scale, as residential establishments do not generate any revenue. Therefore, it should reduce taxes of residential establishments,” he demanded.