The Hindu : Karnataka / Bangalore News : Report on hike in BBMP levies sought

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Saturday, Jan 19, 2008
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Karnataka

Karnataka - Bangalore

Report on hike in BBMP levies sought

Afshan Yasmeen

Direction follows complaint by former Mayor

BANGALORE: Following a spate of “arbitrary” decisions taken by the Bruhat Bangalore Mahanagara Palike (BBMP) with regard to increasing the rates of various levies imposed on citizens, the State Government has directed the civic body to submit a detailed report on the comparative prevailing rates in cities such as Chennai and Hyderabad.

In a letter from the Housing and Urban Development Department dated January 8, BBMP Commissioner S. Subramanya has been asked to conduct a detailed study of the existing rates of similar levies in these cities and submit a report to the Government at the earliest.

A copy of this letter is in possession with The Hindu. According to the letter, the direction follows a complaint by the former Mayor P.R. Ramesh to Governor Rameshwar Thakur.

“The Government has taken serious note of the complaint as the new rates are directly affecting citizens,” the letter states.

In the last few months, the Palike has introduced the new system of property tax based on the capital value of a building (CVS), increased rates for khata transfer, obtaining khata extracts and certificates, birth and death certificates and getting building plans sanctioned.

Penalty

The annual five per cent hike in penalty for delayed property tax payment has been converted into a monthly two per cent fine. The civic body has also introduced a new storm water drain cess that will be collected as part of the property tax payment from citizens. It has re-introduced the collection of improvement charges in all the newly added areas.

The Government had in May directed the BBMP to set up an experts’ committee to study and evaluate the old Self Assessment Scheme (SAS) of property tax based on the annual rental value of a building and the new one based on the capital value of a building.

New system

The Government had asked the civic body to introduce the new system from April 1, 2008 only after further suitably amending the Karnataka Municipal Corporations (KMC) Act based on the recommendations of the expert committee.

Ignoring this directive, the civic body went ahead and introduced the scheme through a circular on October 4, 2007.

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