BBMP Proposes Hike in Property Taxes

Published on Feb 23, 2013, 03:20 AM IST
The cash-strapped BBMP is planning to increase property taxes by 20 per cent for residential and 25 per cent for commercial buildings. It has also proposed to realign the property tax zoning system. For example, areas presently in B zone can be moved to A zone or F zone to E zone. The proposal will be tabled before the palike council on February 26.

A similar proposal was sent to the council last year but was not approved by corporators. Eyeing more revenue generation, BBMP has planned to send a similar proposal to the council once again this year, and if approved, the increased property tax slab is likely to come into effect from April 1, 2013.

The proposal states that the Karnataka Muncipal Corporation (KMC) act mandates for a tax hike somewhere between 15 percent to 30 percent once in three years. The last time the BBMP revised taxes was in 2008 when the Self Assessment Scheme (SAS) based on Unit Area Value (UAV) was introduced.