Monday, Nov 03, 2003
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By Our Staff Correspondent
However, the Mysore Grahakara Parishat has cautioned that the scheme in its present form needed revision and modification but cautioned against reverting to the old system, as it would be against the interests of a large number of taxpayers.
T.N. Manjunath and P.M. Bhat of the parishat pointed out that in the old system the annual property tax was the estimated rent on the property for two-and-a-half months. In case rent was not estimated then property tax was levied at the rate of 1.5 per cent of the estimated market value and this was on a higher side than the prevailing market rate, they said.
But there was another reason that went against reverting to the old system. Earlier, the market value was estimated by the officials of the Mysore City Corporation, who were the sole authority to estimate the rates, and hence was not reckoned to be scientific. The chances of arbitrariness and corruption in estimating market value of the property were high and this could be avoided under the new scheme. Hence, the people should not favour calls for reverting to the earlier system, they said.
However, Mr. Ramdas and a few voluntary groups recently gave a call to the citizens to pay property tax as per the old scheme till the High Court disposed of the petition. The MLA also referred to Supreme Court directions saying that imposition of property tax based on capital value of property was not proper.
Commenting on the existing scheme, the parishat pointed out that estimating property tax on the basis of market value was notional and varied in relation to the prevailing real estate value in any area. The market value tend to go up at a few places more so if it was for sale near a commercial area but that could not be the basis for computing property tax.
Similarly, the booklet brought out by the Mysore City Corporation had no co-relation and the examples published did not prove the theory, the parishat said. Likewise, the depreciation rate provided by the Government under the new scheme had complicated the computation. Under the previous system, the depreciation involved was a simple computation with a round figure of say five per cent or 10 per cent.
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