BANGALORE: Under the soon-to-be-introduced property tax collection based on Capital Value System, property on cross roads, main roads, residential layouts and main arterial roads will have different tax rates.

The new taxation system will be entirely based on guidance value of the property, according to H.B.S. Aradhya, retired Deputy Commissioner (Revenue), of Bangalore Mahanagara Palike (BMP) here on Tuesday.

In an interactive session arranged by Citizens Voluntary Initiative for the City of Bangalore (CIVIC Bangalore), Mr. Aradhya said the property tax under the CVS scheme is calculated as a percentage of the property's guidance value.

Easy calculation

To help property owners calculate the tax easily, the BMP is likely to bring out a book of guidelines soon, specifying the ward-wise and street-wise tax rates.

Delay

Although the new system is expected to replace the existing one under the self-assessment scheme, the formal introduction is being delayed due to various reasons.

Mr. Aradhya said six lakh pieces of property were assessed so far in the BMP limits. In 1999-2000, when the Self Assessment Scheme was introduced, there were only three lakh assessed properties in the city.

About one lakh are yet to be assessed. "The BMP is doing its best to bring even these property under the tax net through GIS mapping and other methods," he said.

Underassessment

But, he admitted that despite this, the problem of underassessment is likely to continue. "There are lot of vacant lands in the areas newly added to BMP. In ward 99, for instance, there are about 300 pieces of property which have not been assessed due to ownership disputes and other problems."

He said the BMP generated a revenue of about Rs. 230 crores during the last financial year through property tax.

If the CVS system is introduced, this could go up by about 20 to 25 per cent, he felt.

Doubts about new scheme

Representatives of various residents' welfare associations wanted the government to clarify all the doubts related to the new scheme. They wanted the tax calculation to be explained in a simple manner to all property owners. CIVIC representatives assured the associations that they could act as a platform to put forth specific questions to the government.

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