The Hindu : Karnataka / Bangalore News : Property tax rate for commercial buildings in city increased

Online edition of India's National Newspaper
Tuesday, Apr 04, 2006

Karnataka

Karnataka - Bangalore

Property tax rate for commercial buildings in city increased

Staff Reporter

BMP expects to net an additional Rs. 55 crore revenue

BANGALORE: The Bangalore Mahanagara Palike (BMP) has increased the property tax rates by 20 per cent for non-residential and commercial buildings in the city. The BMP expects to earn an additional Rs. 55 crore through this increase.

A resolution to this effect was approved along with the BMP budget for 2006-2007 at the BMP Council meeting on Monday. While the existing Self-Assessment Scheme (SAS) of property tax introduced in 2000 will continue, the rates for commercial buildings will be increased by 20 per cent, the resolution said.

The proposed property tax scheme based on the capital value of a building (CVS) has been put off in view of the November BMP elections. The 20 per cent hike will be based on the annual rental value and not on the capital value of the buildings, the resolution said.

The property tax target of Rs. 400 crore this year includes Rs 55 crore expected from the increase in property tax rates for commercial buildings. The rates have been hiked by 20 per cent after the State Government revised the guidance value of property recently, the resolution added.

The BMP, which has not proposed to levy any new tax on citizens, expects Rs 30 crore from levy of solid waste management cess, which was introduced from January. The proposed levy of infrastructure cess has also been put off.

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