The Hindu : Front Page : Decision on CVS comes as a major relief

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Friday, Jun 13, 2008
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Decision on CVS comes as a major relief

Special Correspondent

Implementation of Capital Value System and Sakrama deferred

BANGALORE: The State Government provided a major relief to property tax-payers in the jurisdiction of Bruhat Bangalore Mahanagara Palike (BBMP) by deferring the implementation of the Capital Value System (CVS) of tax assessment and also the contentious Sakrama scheme for regularisation of unauthorised and illegal structures.

The Cabinet on Thursday decided to defer the Capital Value System (CVS) of tax assessment, following widespread criticism from the public due to the steep rise in property values.

Addressing presspersons after a Cabinet meeting, Rural Development and Panchayat Raj Minister Shoba Karandlaje and Home Minister V.S. Acharya said the BBMP, which was facing severe shortage of funds, had sought budgetary support from the Government on account of a stop in the collection of property taxes from April 1. The BBMP has now been directed to collect property taxes on the basis of the old Self Assessment Scheme (SAS), the Ministers said.

The implementation of the CVS, which has been mandated by law, would be kept on hold for three months. Dr. Acharya said the property tax scheme would be restructured after the panel submitted its report.

The Government would bring in an amendment to the Act for keeping CVS on hold till then, and at the same time permit the BBMP to collect property taxes under SAS.

The Government also took another major decision relating to regularisation of property.

It formally decided to defer the regularisation of unauthorised constructions under Sakrama scheme, till the end of December.

The final decision would be taken after a detailed examination of the scheme by a Cabinet sub-committee which will be constituted by the Chief Minister shortly, Ms. Karandlaje said.

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