The government has proposed that the Bruhat Bengaluru Mahanagara Palike (BBMP) levy and collect Land Transport Cess from property owners in the city. As per the proposal, 2% of the property tax is to be collected as Land Transport Cess.
The subject is likely to be placed before the BBMP Council for discussion on Tuesday. This is not the first time that the subject is coming up in the council. Last year, when the subject was discussed in the council, many councillors had opposed the proposal.
The councillors had maintained that the BBMP is already collecting four cesses – Beggary, Solid Waste Management, Labour and Library – along with property tax. Levying Land Transport Cess would only increase the burden on citizens, they had argued, following which the subject was deferred.
This time around, the Department of Urban Development has pointed out to the audit objections raised by the Accountant General, and directed the Commissioner to table the proposal once again in the council.
Sources said the cess may be levied as per the recent amendment to the Karnataka Municipal Corporations Act, 1976. Following the amendment, the Karnataka Municipal Corporation (City Transport Fund) Rules 2013 were also framed.
The civic body can collect the cess as part of the property tax payment this fiscal. For those who have already paid the property tax, the civic body may place a supplementary demand for collection of the cess.
For the purpose of collection of the cess, the BBMP is required to maintain a separate account. The civic body is also to send monthly and quarterly reports to the Director, Road Transport Department, sources added.
It now remains to be seen if the proposal will be approved by the BBMP Council.
