BENGALURU: Bengaluru South BJP MP Tejasvi Surya has urged the state government to roll back the Bruhat Bengaluru Mahanagara Palike’s (BBMP) proposed property tax system, which relies on guidance value to determine the tax rates instead of the existing zonal-based classification.
Writing to Deputy Chief Minister D K Shivakumar, the BJP MP said that the proposed tax system has raised several apprehensions among the Bengaluru residents.
“BBMP’s proposed property tax system, relying on guidance value to determine the tax rates instead of the existing zonal-based classification, has caused confusion & apprehension among the public. It also escalates the financial burden on middle-class families. Urging DCM @DKShivakumar to roll back the new system & hold further consultations with public before bringing about a new Property Tax regime”, Surya posted on X on Tuesday.
BBMP's proposed Property Tax system, relying on Guidance value to determine the tax rates instead of the existing zonal-based classification, has caused confusion & apprehension among the public.
It also escalates the financial burden on middle-class families.
Urging DCM… pic.twitter.com/Zm79d23RDA
— Tejasvi Surya (ಮೋದಿಯ ಪರಿವಾರ) (@Tejasvi_Surya) March 12, 2024
Deputy CM Shivakumar on Monday released the new property tax collection system which will be implemented from April 1. The authorities argued that the new system is intended to simplify and rationalise the taxation process while also boosting revenue for BBMP.
However, Surya said that the new tax system was introduced without having a public consultation. “Under the guidance value system, the tax rates include 0.2 pc of the guidance value for tenanted properties, 0.1 pc for sell-occupied properties and 0.025 pc for fully vacant land. The BBMP has sought to introduce the guidance value-linked tax system without having public consultation, leading to a significant number of residents expressing their concerns of an increase in property tax and its uneven application on apartment complexes”, Surya said in his letter to Shivakumar .
“Coupled with the provision to levy double the tax on rented properties compared to self-occupied ones, has raised several apprehensions among the community,” he added.
He said that the Government must address these concerns and alleviate undue financial strain on property owners. Furthermore, the provision for an annual 5% hike in property tax from 2025 onwards could further escalate the financial burden on homeowners, especially middle-class families, Surya said.
“In light of the aforementioned concerns, I kindly request you to roll back the Guidance value-based Property Tax system and address the apprehensions of the residents of Bengaluru on the Property Tax calculations,” he urged to the Deputy CM. (ANI)