Property tax: new proposal may provide relief

By Our Special Correspondent

BANGALORE, DEC. 3. The proposal to replace the system of determining property tax on the basis of annual gross rent by one based on taxable capital value related to estimated market value will provide relief to property owners even at the cost of the municipal corporations, it was claimed here on Sunday.

There was, however, no need for any misgiving for the municipal corporations on this account as the shortfall in their revenues could be made good by other levies covering the so-far exempted institutions, according to highly reliable sources.

The move to rationalise the property tax system and to introduce the system of self-assessment was advocated by the Vasudeva Committee nearly four years ago, but the Government had found no time all along to amend the Karnataka Municipal Corporations Act to give effect to the recommendations.

In the just concluded session of the Legislature, a Bill was introduced in the Assembly to amend the Act to give effect to the recommendations made by the committee, fine-tuned by the officers.

However, the Bill was not adopted as it had to give way to bills considered more important, after discussions were held on it for sometime. According to the Minister for Municipal Administration, the provisions are intended to be given effect to through an ordinance.

Allaying fears about the provision relating to levy of infrastructure cess on vehicle users in addition to property tax, the sources said that the Government did not have in mind two- wheelers.

This would be limited only to cars, vans, buses and trucks to enable the corporations find funds for maintenance of roads, most of which were in a poor state as the revenues from the property tax at present, were hardly sufficient even for carrying out minor repairs. The tax would be on a graduated basis with the trucks and buses bearing the maximum burden.

Similarly, the proposed solid waste management cess (not exceeding Rs.1000 per month) would be limited to private hospitals, hotels and choultries many of which were claiming exemption under the guise of charitable institutions.

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Section  : Southern States
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