BBMP issues draft notification to restructure property tax calculation in Bengaluru | Bangalore News
The Bruhat Bengaluru Mahanagara Palike (BBMP) on Wednesday issued a draft notification to introduce a new property tax calculation structure in Bengaluru and proposed to do away with the old system of zonal classification.
This comes a day after the legislative Assembly on Tuesday adopted the BBMP Bill 2024 which seeks to reduce the penalty on property tax arrears by 50 per cent in Bengaluru city limits.
For residential properties, the tax rates include 0.2 per cent of the guidance value for tenanted properties, 0.1 per cent for self-occupied properties and 0.025 per cent for fully vacant land. Meanwhile, for non-residential/commercial properties, the tax rates include 0.5 per cent of the guidance value for non-residential property land and 0.025 per cent for fully vacant land.
Earlier, the property tax was calculated based on five zonal classifications with zone A classified as having high guidance value and with E having the least. According to the BBMP officials, this led to property owners in A zone paying more tax compared to owners having the same built up area in other zones.
The draft notification issued by the BBMP in accordance with Section 144 of the BBMP Act, 2020 stated, “The elimination of the A B C D E zonal classification is in favour of taxation based on property guidance values. The proposed tax rates vary for residential, commercial, industrial and other properties.”
“While other cities adopted a taxation system based on guidance values under Karnataka Municipal Corporation (Amendment) Act, 2021, Bengaluru did not come under the same as it was governed by the BBMP Act 2020,” said BBMP chief commissioner Tushar Giri Nath.
With the amendment, the BBMP will also implement the same and has also invited objections from the public on the draft notification.
© The Indian Express Pvt Ltd
First uploaded on: 22-02-2024 at 17:02 IST
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