The Hindu : Karnataka News : Govt. urged to revise house tax norms

Online edition of India's National Newspaper
Wednesday, Feb 23, 2005

Karnataka

Karnataka

Govt. urged to revise house tax norms

By Our Staff Reporter

BANGALORE, FEB. 22. The Karnataka Nagarikara Hitarakshana Vedike has urged the Government to clarify its position on the Municipal Taxation Bill (amended) adopted by the two Houses of the Legislature recently.

The vedike president and former BJP MLA, A. Ramdas, told presspersons here on Tuesday that the Bill needs clarification on various counts. It will prove detrimental to public interest if it is made into an Act without revision.

It is unfortunate that the legislators in the two Houses did not study the implications of the Bill in detail, he said.

The Bill intends to impose heavy house tax with retrospective effect from 2001 on the basis of stamp duty paid at the respective Sub-Registrar's office, he said.

The Government should revise it and frame an unambiguous set of rules on the taxation aspect before the Bill becomes an Act, he added.

He alleged that the Government, in an "unethical attempt to fill its coffer", has unscientifically enhanced the valuation fee from 20 per cent to 120 per cent.

It is surprising that a square foot of prime land in Gulbarga town is officially valued at Rs. 4,300 and a square foot of land available in a slum area is valued at Rs. 1,265.

These rates only reflect the questionable methods adopted to evaluate stamp duty. The Government has followed erroneous and irrational methods to assess house taxes that are likely to affect tax collection.

As the proposed house tax will cover 125 town municipalities and six corporations in the State from the new fiscal, the Government should clarify the tax norms by March 5. It should also stop collection of house taxes by coercion.

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