Img : urbanupdate

The wish of Bruhat Bengaluru Mahanagara Palike [BBMP] to increase the property tax rate is postponed and this is due to the model code of conduct that is already in action due to the approaching general assembly elections.

As per the Karnataka Municipal Corporations Act, 1976, the Municipal Corporation is rightful to revise the property tax every three years that may include a minimum increase of 15 percent and a maximum of 30 percent for both residential and non-residential properties in the city.

Gangambike Mallikarjun, Mayor, said that the proposal is pending for a long time. We wanted to hike the property tax rates according to the norms of Karnataka Municipal Corporations [KMC] Act but the same is being postponed because of the model code of conduct that is in action.

In the city, lakhs of property taxpayers are escaped from paying 25 percent extra property tax for the financial year 2019-20 and this is due to delay in increase in property tax.

One of the BBMP revenue officials said that the decision making on increased property tax rates is likely to be postponed as the BBMP Council elections are estimated to be held next year.

BJP is the main opposition in the BBMP Council and is opposing the decision to increase the property tax rates.

The sources said that BBMP Commissioner N Manjunath Prasad prepared a proposal to increase the property tax in November but the same didn’t get approved because of the elections in the BBMP Standing Committees. The issue can’t be taken up in the recent BBMP Council meeting as the Standing Committee on Finance and Taxation failed to take a decision on the proposal.

The model code of conduct is believed to be the main reason that delayed taking up this issue in the BBMP Council meeting.

Hemalatha Gopalaiah, member BBMP Standing Committee on Finance and Taxation said that the proposal to increase the property tax is already sent to the State Government through BBMP Commissioner. The Government has to take a call to effect the hike during this fiscal year or next year.

In 2016, the BBMP has increased the property tax by 20 percent on residential properties and 25 percent on non-residential properties.