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Property taxes set to rise in Bangalore by 15 pc

By - Ramesh Yalagachina

Bangalore City Corporation (BBMP) is planning to increase property tax by 15%. BBMP Commissioner Siddaiah had sent a proposal to increase the tax rate by 15 to 30 per cent as the block period of the Unit Area Value system comes to an end this March. Meanwhile, it is said that the BJP councillors have been taken to task by Deputy Chief Minister R. Ashok, who is also the city in charge, for Finance has no plans to hike taxes," Standing Committee Chairman K A Muneendra Kumar said. The commissioner, according to Kumar, had sent a proposal for raising taxes by 20 per cent on residential properties and 25 per cent non-residential ones. Kumar said the BBMP had last increased property taxes in 2008 and according to the Karnataka Municipal Corporation Act, property taxes can be revised every three years. this year, and if approved, the increased property tax slab is likely to come into effect from April 1, 2013. With the three-year block period coming to an end in 2012 for revised Self Assessment Scheme (SAS), there are possibilities of BBMP wanting to collect more tax from property owners. "BBMP has not taken public opinion on hiking the property The BBMP commissioner sent a note proposing an increase in property taxes. proposing such a "sensitive subject" ahead of the urban local body and Assembly elections, apprehending it would dent the party's prospects. "The commissioner sent a note proposing an increase in property taxes. This was sent for discussion during the monthly meeting. But the Standing Committee on Taxation and Deputy Chief Minister R Ashok also said the BBMP and the government had no plans to raise property taxes. A similar proposal was sent for council approval last year but was not approved by corporators.