BBMP i.e. Bruhat Bengaluru Mahanagara Palike is planning to increase the property rate tax for both residential as well as for commercial properties. If all goes well, then the new tax rate will come into effect from April 1st 2019. According to the new tax rate, the property owners for residential units will have to pay 25% increased rate and for commercial properties, the rate will be 30%. The elevation in the property tax rate is being considered as the civic body is dealing with the pressure to undertake new civic projects and faced with few avenues to raise funds.
N Manjunatha Prasad, BBMP commissioner, said that the rate for the property tax is being revised according to the Karnataka Municipal Corporation Act. It is mandatory for the revision of property tax once in three years and a note has also been forwarded to the council in the same context. Also, the revenue department of the civic body has prepared a draft to escalate the property tax and have submitted the same to the BBMP Commissioner.
According to the Palike officials, this is a much-required proposal as the civic body is finding it challenging to complete various ongoing projects and also to take the new project. This is a tricky situation as the authority is having insufficient funds.
With this increased property tax rate the Bruhat Bengaluru Mahanagara Palike is estimated to earn an additional revenue of Rs.500 crore. The same will be first sent to the Palike’s standing committee on taxation and finance and the same will be discussed in the BBMP council prior to sending it to the State Government.