BBMP will decide on action plan to hike property tax by Month End

Get ready for a bigger hole in the pocket , BBMP is due to revise property tax by 15% across the board, with the first three years block, period under the revised self assessment scheme ( SAS) comming to an end with the current fincancil year, The civic body is looking at fixing an action plan by December End.

This is bad news for the common man, who has just got used to paying a steep tax under SAS. Payment of property tax has also just settled into some semblance of regularity.
But BBMP is hit by shrinking resources, and plans to get tough with collection of tax, its major source of revenue. While the target for 2010-11 is Rs 1,500 crore, BBMP managed to collect approximately Rs 800 crore.
The revised SAS law provides for a minimum 15% revision once every three years. According to the old SAS law, tax would be revised only once every five years.
But how far this revision will help in tax collection is debatable. The middle class, already buffeted by high prices and cost of living, may find the hike in tax rate a drain. Besides, there are many who haven’t managed to pay the tax, which saw a steep revision when SAS kicked in — this section may continue to evade payment. Even now, nearly 5 lakh properties are yet to come into the tax net. The people’s demand has been to retain the five-year revision schedule.
“We have not decided yet, but it should be made five years as our immediate focus is to get all properties under the tax net, as the revised SAS law came into effect before the council was elected. Increasing rates will be a problem, and needs to be discussed in the council,’’ said P N Sadashiva, chairman of the tax and finance committee.
Starting Thursday, the committee will hold a detailed twoday meeting to discuss collection trends across all eight zones of BBMP. “The final proposal for revision will be based on collection figures and trends,’’ Sadashiva added.

MOPPING IT UP


BBMP will decide on action plan to hike property tax by month-end
Civic body had targeted tax collection of Rs 1,500 crore, but has managed only Rs 800 crore
Revised law provides for 15% revision of tax rates every three years
BBMP to begin issuing notices to tax defaulters by next week
In case of non-payment, it proposes to attach movable properties of property owners

BBMP gets tough on tax collection


Post November 29, the clock for the 2010-11 block has begun ticking. But, at least five lakh properties have not paid any tax since 2008, say BBMP figures. Of these, 2.5 lakh are vacant sites.
BBMP plans to begin issuing special notices to defaulters by next week, demanding payment, starting with 2008-09 and 2009-10. In case there is no response, the Palike will attach movable properties of the owner. In case of rented properties, it will include the rent.

However, the plan for unassessed vacant sites is undecided, as wrong contact details are the main issue.

BBMP has tentatively decided to put up boards at these sites, slapping penalty for site cleaning and a three-time penalty for non-payment of tax.

The Palike is trying to garner funds from all possible corners to fill up its coffers and meet its budget target of Rs 8,446 crore. It should have essentially mobilized at least Rs 5,920 crore by now, but has only managed to earn Rs 1,444 crore.

Even in revenue collection, the civic authority is lagging behind. While, it should have earned at least Rs 2,414 crore by now, it has managed to pool in only Rs 620 crore. Besides, it’s collection from ads and hoardings, which was estimated to touch Rs 120 crore, has only reached the Rs 2.91 crore mark.

TOI-- 02/12/2010

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