Karnataka - Bangalore   

New property tax scheme may be put off by an year

By Afshan Yasmeen

BANGALORE, JUNE 8. The Bangalore Mahanagara Palike's (BMP) proposed move to introduce the new system of property tax assessment based on the capital value of a building may be postponed by another year.

Some corporators, including those from the ruling Congress, have raised objections to the manner in which the scheme is being introduced. Not only the corporators but also members of the Standing Committee on Taxation and Finance (T and F) are yet to be convinced about the scheme.

"The new Capital Value-based Scheme (CVS) needs to be discussed and debated in the BMP Council. Citizens have recently accepted the Self Assessment Scheme (SAS) of property tax and will obviously object to the new scheme. A public debate should also be initiated," a Congress member said.

Besides, the Mayor, P.R. Ramesh, who earlier had said the new scheme would be introduced from this year itself, is now doubtful about the feasibility of its implementation.

"I will allow a detailed discussion on the subject in the council. Valid suggestions will be incorporated in the scheme and appropriate changes made before it is implemented. As we have already lost two months of this financial year, even if the scheme is approved this year, it may be introduced only from the next fiscal," he told The Hindu on Tuesday.

"By implementing it next year, we will also be fulfilling our commitment made to those who opted for SAS when it was introduced in 2000 that the tax would remain the same for five years till March 31, 2005," he said.

This apart, the file pertaining to the introduction of the new system is yet to be approved by the T and F Committee. The committee members are still studying it. The Committee Chairman, K.S. Samiulla, said that he has convened a meeting of officials, including the Commissioner, M.R. Sreenivasa Murthy, and the Additional Commissioner (Finance), P.K. Srihari, to seek clarifications on various points in the file.

"Several residents' welfare and non-governmental organisations have called up and objected to the introduction of the new scheme. So, I also invite members of the public to give their suggestions before the scheme is finalised," Mr. Samiulla said.

Meanwhile, the BJP is all set to protest the introduction of CVS. "We have not been taken into confidence while formulating the new system. Unless we know the pros and cons of the new scheme, how can we defend it before the people? We need to discuss it before it is tabled in the Council," a BJP corporator, B.S. Satyanarayana, said.

While BMP officials argue that the new scheme is the most progressive way of tax assessment and is being followed in most of the European countries, the corporators do not agree with them. "We still believe that the SAS of property tax based on Annual Rental Value (ARV) is the best," another BJP corporator added.

Printer friendly page  
Send this article to Friends by E-Mail

Karnataka

News: Front Page | National | Tamil Nadu | Andhra Pradesh | Karnataka | Kerala | New Delhi | Other States | International | Opinion | Business | Sport | Miscellaneous |
Advts: Classifieds | Employment | Updates: Breaking News |

Stories in this Section

• City keeps its date with Venus
• New property tax scheme may be put off by an year
• `Vision of India' launched
• Woman rescued from Kuwaiti employer
• Dacoity plans foiled, 10 arrested
• IETI 2004 from tomorrow
• Teachers to protest cut in salary
• Property show on June 12, 13
• Around the City
• In Bangalore Today

Copyright © 2004, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu