Karnataka - Shimoga   

Levy higher tax on unauthorised structures, Kodgi tells CMC

TAXING MATTERS:A.G. Kodgi (second from right), Chairperson of the Task Force for the Implementation of Recommendations of the Report of Third Finance Commission, addressing a progress review meeting in Shimoga on Tuesday. MP Ayanur Manjunath is at right.

Shimoga: The Chairperson of Task Force on Implementation of the Recommendations of Third Finance Commission A.G. Kodgi has suggested that the urban local bodies impose tax on buildings constructed without valid licence and permission.

There was a provision in the law to impose twice the prescribed amount as tax on such buildings, he told a review meeting at the office of Deputy Commissioner in the city on Tuesday.

As the unauthorised buildings enjoy civic amenities such as drinking water, roads and drains extended by urban local bodies, they should be brought under the taxation net.

Double the prescribed amount should be collected as tax till the unauthorised construction was regularised, he said.

Shimoga City Municipal Council president K.S. Gangadharappa said that imposing steep tax on unauthorised structures might result in legal problems. If tax was imposed on the property that could not be regularised, then the owners might create problems during eviction, he said.

Mr. Kodgi clarified that urban local bodies had every right to collect tax and fee for the service offered. MP Ayanur Manjunath, who endorsed the view, called for a debate in this regard. Deputy Commissioner V. Ponnuraj was present.

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