Citizens living in the outer areas may have to shell out more as property tax from next financial year. Already burdened with inadequate infrastructure to support a burgeoning population, many areas in the outer zones, such as Yelahanka, Bommanahalli, Mahadevapura and Hoody, where property tax is currently charged at a lower rate, is proposed to be revised. Most of these areas coming in the IT corridor have not seen property tax rate revision, despite hectic real estate activities that have resulted in gated communities, independent villas and luxury apartments. These areas have also seen an increase in commercial activities, fuelled by the booming IT sector. Currently, there are six tax zones in the city, with all properties coming under the A zone paying high tax and those under F zone paying lower rates. Though the guidance value for the properties in these areas has been revised thrice – 2009, 2013 and 2014, the property tax, fixed on the basis of the 2007 guidance value, has not been revised since. The Bruhat Bangalore Mahanagara Palike (BBMP) Administrator, T.M. Vijay Bhaskar, told The Hindu that the work on reorganisation of tax zones has begun. He pointed out that though the guidance value of many areas had increased, the tax zones had not changed. “Every two years, the Department of Stamps and Registrations revises the guidance value. However, the tax zones have not been revised since 2008,” he stated. The reorganisation of tax zones is important as many areas that are under low tax zones had developed commercially, he said, adding that “By reorganising the tax zones, BBMP will be able to garner more tax, especially from commercial establishments”.
BBMP’s Deputy Commissioner (Revenue) M. Venkatachalapathy said that the civic body’s earlier efforts made to reorganise the tax zones were unfruitful. Though the proposals had been tabled before the previous BBMP council, it did not receive a green signal. “The subject was proposed even during the monthly meeting in March. But the council sent back the proposal to the Standing Committee for Taxation and Finance for re-examination.”
He also said that once the proposal is finalised, the government will have to issue a gazette notification and invite objections from the public. “It is only after this can the new tax zones be implemented,” he said, adding that this could happen only after the BBMP polls, as the model code of conduct is in place.
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