BBMP proposes hike in property tax, cesses
The alternative is hiking the fee for building plan approval and khata transfer, cess for garbage and land transport
If the civic body has its way, citizens are likely to pay more in tax and cess. The Bruhat Bengaluru Mahanagara Palike (BBMP) has proposed to increase property tax and garbage cess, and land transport cess in a bid to bring in more revenue to the financially starved civic body.
BBMP Commissioner N. Manjunath Prasad told reporters on Saturday that the proposals had been forwarded for approval to the Administrator Gaurav Gupta. Though the proposals had been placed before the previous BBMP council, they had not been approved for various reasons.
Property tax, which is one of the main revenue sources for the civic body, was last hiked during the 2016-17 fiscal. According to sources, the BBMP’s Revenue Department had recommended increasing the tax rate by 20-25%. Though the Karnataka Municipal Corporations Act, 1976, mandates increasing the tax rate every three years by a minimum of 15% and maximum of 30%, the civic body’s council had not approved the proposal tabled by the Commissioner for various reasons.
“In the eventuality of the State government not approving the proposal to hike property tax, the civic body is likely to seek approval for increasing other revenue sources, such as fee for building plan approval and khata transfer, garbage cess and land transport cess.”
The BBMP collects cess for beggary, labour, library, solid waste management (SWM) and land transport.
Earlier this year, the BBMP council approved a proposal to collect land transport cess. Mayor M. Goutham Kumar had claimed that this would bring in an estimated ₹150 crore in revenue.
According to Mr. Prasad, the civic body spends ₹1,000 crore on SWM, but collects only around ₹45 crore through garbage cess.
“We proposed increasing the service charge in the hope of meeting at least part of the expenditure on SWM,” he said, and added that once approved by the Administrator, the proposal would be sent to the State government for ratification.
Smart parking on 87 roads
The civic body is expecting annual revenue of ₹31.56 crore with implementation of smart parking system on 10 major roads in the Central Business District. The projected was inaugurated by Mr. Gupta and Mr. Prasad on Saturday.
In the first phase, it was implemented on 10 major roads, which have parking facilities for 475 four-wheelers and 510 two-wheelers.
Mr. Prasad said that this system will be put in place on 87 roads in the city covering parking slots for up to 9,000 vehicles.