Published 18:40 IST, October 12th 2020
BBMP proposes increase in Bengaluru's property tax, Siddaramaiah demands CM's intervention
Siddaramaiah requested the Bruhat Bengaluru Mahanagara Palike (BBMP) not to increase the property tax and demanded CM BS Yediyurappa to intervene in the matter
- India News
- 2 min read
Congress leader and former Karnataka Chief Minister Siddaramaiah on Monday requested the Bruhat Bengaluru Mahanagara Palike (BBMP) not to increase the property tax and demanded CM BS Yediyurappa to reduce the tax instead of increasing it.
Siddaramaiah cited a news report stating BBMP's plan to increase the property taxes by 20% to 30%. He contended that the move will be disastrous for the city's development adding that people are under stress to pay the property taxes at current rates.
Siddaramaiah also appended that the increased taxes will lead to increased rent making it difficult for businesses to function and reducing the affordability of the poor people.
Karnataka government plans to increase property taxes
Karnataka government has planned to increase the property tax for both residential and commercial spaces by 15-30% in a bid to generate revenue, according to reports. A meeting was held on Friday in which the BBMP officials narrowed down on two strategies, one of them would be increasing the tax by 15 to 20% and the other one was to bring the unmapped properties into the tax system.
BJP lawmakers have taken the issue with Karnataka CM saying that it would affect the winning chances of BJP in municipal elections in 2021. The BJP members have requested the CM to reconsider the decision.
Property tax, which is one of the main revenue sources for the civic body, is revised once in every three years as they were revised last in 2016-17, and the Karnataka Municipal Corporations Act, 1976, authorizes increasing the tax rate every three years by a minimum of 15% and a maximum of 30%.
(With inputs from ANI)
Updated 18:40 IST, October 12th 2020