BBMP Plans To Hike Property Tax By 25-30%

BBMP Plans To Hike Property Tax By 25-30%

BBMP Plans To Hike Property Tax By 25-30%
(PropTiger)

With an aim to raise funds for civic infrastructure projects, the Bruhat Bengaluru Mahanagara Palike (BBMP) plans to raise property tax by 25-30 per cent on residential as well as non-residential complex. The hike is expected to bring in additional Rs 500 crore for the authority. The proposal will be tabled in front of the standing committee for approval, and will be moved to the Karnataka government for final implementation from April next year.

With a similar aim, property tax in Bengaluru was raised by 20 per cent for residential building and 25 per cent for non-residential properties in 2016. The civic body can revise the property tax in every three years, with a minimum of 15 per cent and maximum 30 per cent, according to the Karnataka Municipal Corporations Act, 1976.

The revenue thus earned would be used by the civic body to improve infrastructure facilities in India’s information technology capital. According to the BBMP, financial crunch is affecting ongoing as well as new projects. The authority has collected Rs 2,000 crore against the target of Rs 3,000, so far this year.

Earlier, the civic authority had proposed to introduce a two-per-cent land transport cess on all property owners to garner better revenue. That proposal is still pending with the state government for the approval. Apart from this, the cash-strapped BBMP is also planning to levy double the property tax on those owners who construct extra floors by violating the sanctioned building plan by amending the municipal corporation act.

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