Southern States
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Karnataka
SAS to be introduced in Belgaum
By Our Staff Correspondent
BELGAUM, JAN. 28. The city corporation decided on Monday to impose a tax of 0.3 per cent and 0.5 per cent on vacant land/residential properties, and commercial properties, respectively, under the self-assessment scheme (SAS) for property tax collection. This follows the State Government's decision to implement the scheme in the city from the next financial year.
A special meeting of the corporation council, presided over by the Mayor, Vandana Belgundkar, passed a unanimous resolution in this regard. The Deputy Mayor, Veena Kolkar, and the Corporation Commissioner, G.A.Adagatti, were present.
The council adopted the tax rates prevalent in Hubli-Dharwad Municipal Corporation limits, without a discussion. Ramesh Kudachi, MLA, moved the resolution, and the ruling and the Opposition members supported it. Mr. Kudachi and the Opposition Leader, Shivaji Sunthakar, raised several issues and pointed out the "lacunae" in the scheme, after the Council Secretary, V.S.Chougala, explained its features.
Under the scheme, property owners have to assess the tax themselves, pay the amount in counters to be opened in branches of a few nationalised banks, and file the returns with the bank challan on or before June 30, failing which penalties will be imposed on them. Those filing false returns will also be penalised. If the returns are filed on or before April 30, a five per cent rebate will be given.
Under the KMC Act, charity, Government, and certain other institutions have been exempted from property tax. The Government was planning to impose "service tax" on them. The corporation cannot impose tax on agricultural lands.
Mr. Chougala said the scheme ensured people's participation and transparency in assessment of property tax, and increased the revenue of the corporation. Only Rs. 3.20 crore was being collected as tax from nearly 42,000 properties, and the scheme would help double it. There were nearly 18,000 unauthorised constructions for which tax was not being paid.
He said a committee, headed by the Deputy Commissioner, had announced the provisional tax rates for open land, and residential and non-residential structures. The PWD had fixed rates for 13 various specifications/type of constructions. The Sub-Registrar's office had the rate list ready for open lands in various localities of the city. A publicity campaign would be launched to make the property owners aware of the scheme.
The assesses should calculate taxes for their properties on the basis of the rates available with the Sub-Registrar and the PWD. For lands with a construction, the tax would be on the basis of the value of the land plus the value of the building.
The depreciation on the value of the building would also be taken into account. If the land or a building had not been rented out, the owner needed to pay only half the total tax plus 44 per cent of it as cess on water supply and other services.
The penalty for delay in filing returns would not be more than half of the difference amount. For false returns, the penalty would not be more than double the difference amount.
Mr. Kudachi said the discretionary powers given to the Corporation Commissioner or a designated officer to decide on the penalty provided scope for exploitation and harassment of property owners, and corruption.
He suggested that the corporation fix slabs of penalties on the basis of the duration of the delay.
The residential buildings owned by the State and the Union governments should also be brought under the scheme.
Mr. Adagatti said the corporation would receive returns from unauthorised constructions also, but it would be treated only as non-refundable "bonus".
Their owners would have to pay double the property tax plus the cess, and this did not regularise the constructions, he added.
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