With the Karnataka government accepting a proposal for a hike in property tax, building and plot owners in Bengaluru are sure to feel the pinch from the next financial year. Sources in the Bruhat Bengaluru Mahanagara Palike said the hike is about 20% for residential and 25% for non-residential properties.
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Mayor BN Manjunath Reddy told TOI the decision could have been taken at the government level, and he was not sure about the exact revision in tax. "We had proposed a 20% revision," he added. Officials in the BBMP's finance wing said the new rates would be applicable from April 2016. "The BBMP is likely to garner an additional Rs 500 crore in revenue. At present, BBMP is targeting Rs 2,000 crore through property tax," he added.
Officials in the urban development department defended the steep hike, saying tax was being revised after a gap of seven years and the Palike was facing a fund deficit to take up new projects.
Bengaluru minister Ramalinga Reddy and TM Vijay Bhaskar, additional chief secretary for the urban development department, were both unable to confirm whether a government order had, indeed, been issued with regard to the hike in property tax rates.
Bhaskar, who had proposed a property tax hike as BBMP administrator, said: "I am not sure whether the department passed the order, as I am only in charge. I will have to check with additional chief secretary D Satyamurthy."With the Karnataka government accepting a proposal for a hike in property tax, building and plot owners in Bengaluru are sure to feel the pinch from the next financial year. Sources in the Bruhat Bengaluru Mahanagara Palike said the hike is about 20% for residential and 25% for non-residential properties.
Mayor BN Manjunath Reddy told TOI the decision could have been taken at the government level, and he was not sure about the exact revision in tax. "We had proposed a 20% revision," he added. Officials in the BBMP's finance wing said the new rates would be applicable from April 2016. "The BBMP is likely to garner an additional Rs 500 crore in revenue. At present, BBMP is targeting Rs 2,000 crore through property tax," he added.
Officials in the urban development department defended the steep hike, saying tax was being revised after a gap of seven years and the Palike was facing a fund deficit to take up new projects.
Bengaluru minister Ramalinga Reddy and TM Vijay Bhaskar, additional chief secretary for the urban development department, were both unable to confirm whether a government order had, indeed, been issued with regard to the hike in property tax rates.
Bhaskar, who had proposed a property tax hike as BBMP administrator, said: "I am not sure whether the department passed the order, as I am only in charge. I will have to check with additional chief secretary D Satyamurthy."With the Karnataka government accepting a proposal for a hike in property tax, building and plot owners in Bengaluru are sure to feel the pinch from the next financial year. Sources in the Bruhat Bengaluru Mahanagara Palike said the hike is about 20% for residential and 25% for non-residential properties.
Mayor BN Manjunath Reddy told TOI the decision could have been taken at the government level, and he was not sure about the exact revision in tax. "We had proposed a 20% revision," he added.
Officials in the BBMP's finance wing said the new rates would be applicable from April 2016. "The BBMP is likely to garner an additional Rs 500 crore in revenue. At present, BBMP is targeting Rs 2,000 crore through property tax," he added. Officials in the urban development department defended the steep hike, saying tax was being revised after a gap of seven years and the Palike was facing a fund deficit to take up new projects.
Bengaluru minister Ramalinga Reddy and TM Vijay Bhaskar, additional chief secretary for the urban development department, were both unable to confirm whether a government order had, indeed, been issued with regard to the hike in property tax rates. Bhaskar, who had proposed a property tax hike as BBMP administrator, said: "I am not sure whether the department passed the order, as I am only in charge. I will have to check with additional chief secretary D Satyamurthy."
Source - TOI
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