The Hindu : Front Page : Cap on CVS-based property tax likely

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Friday, Mar 28, 2008
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Cap on CVS-based property tax likely

S. Rajendran

BBMP suggested to peg it at not more than double the present tax

The BBMP is confident of raising a revenue of Rs.600 crore from property tax
The city will get four elevated roads to help
ease traffic flow

Bangalore: The Capital Value System (CVS)-based property tax to be introduced from April 1, under the jurisdiction of the Bruhat Bangalore Mahanagara Palike (BBMP) is expected to net a similar revenue as that of last year as indicated in the BBMP budget which will be submitted to the Administrator of the BBMP, Dilip Rau, for his consent on Friday .

The sources in the Government told The Hindu here on Thursday that the CVS will be implemented despite opposition from various quarters. Governor Rameshwar Thakur and one of his advisers have, however, reportedly suggested that BBMP consider a ceiling for the CVS of not more than double the amount that a property owner has been paying.

Under the present CVS proposal it could even be 3.5 times more than what an owner pays under the Self-Assessment Scheme and the alternative scheme calculated on the basis of the Annual Rent Value.

It has also been clarified that the CVS, which is already under implementation in all the other municipal corporation areas of the State, will be introduced. The CVS is part of an amendment to the Karnataka Municipal Corporation Act, 1976, and the amendment was given effect to in 2003.

The BBMP, in its latest budget, is confident of raising a revenue of Rs. 600 crore with the implementation of the CVS which has the same target for the current financial year. Of the nearly 10.60 lakh properties in Bangalore, only 5.97 lakh properties are assessed for tax. The introduction of the CVS would mean a marginally lower tax for properties which enjoy depreciation.

The BBMP has suffered a major financial setback with the State Budget not making any allocation to it. Over the past fortnight, the BBMP authorities, led by the Commissioner S. Subramanya, have held several rounds of discussions with the Adviser to the Governor S. Krishna Kumar and the Principal Secretary to Government, Department of Finance, M.R. Sreenivasamurthy but to no avail.

The BBMP budget for 2008-09 is also expected to spell out several important development works that should help in easing traffic flow on arterial roads. Bangalore will have four elevated roads — Minerva Circle to Hudson Circle with a width of 5.5 metres and expected to cost Rs. 25 crore; Rajajinagar entrance to the vicinity of the city railway station which is expected to cost Rs. 60 crore; and two on the Mysore Road stretch between Sirsi Circle and Outer Ring Road which will cost around Rs. 120 crore. These projects are scheduled to be completed in 24 months.

The budget will also contain several special features — a near realistic presentation on the anticipated revenue receipts; an action-taken report on the projects programmed in the previous budget; an annual financial statement; a list of the ongoing works; and a list of the new schemes backed by budgetary allocations.

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