A group of citizens and members of residents’ welfare associations, along with Namma Bengaluru Foundation, have made recommendations and objections to Bruhat Bengaluru Mahanagara Palike (BBMP) Chief Commissioner Tushar Giri Nath regarding the draft notification on the proposal to collect property tax based on the guidance value. They opined that the timing and implementation of the draft notification posed a challenge, as it was released too late for citizens to respond effectively, providing only a month for preparation. They said the citizens have been happy with the current SAS system.They suggested that any necessary modification can be made to the SAS system. They said that the potential for discretionary decision-making in the new system raises concerns about varied taxes for similar properties. They opined that the shift to a property tax based on the guidance value is criticised for its potential to increase taxes beyond citizens’ capacity. They also added that the draft notification also fails to address important issues such as land apportionment for multiple owners of a single plot and the inclusion of vacant land in tax computation, which has been a standard practice in the CVS system used by municipalities.In response, the BBMP Commissioner provided key insights, including the mapping of 22,000 roads under the BBMP jurisdiction. He clarified that property tax will be determined based on the property ID assigned by the BBMP, ensuring differentiation between diverse properties, such as slums in the CBD and upscale villas in Jakkur. “We should evaluate properties not solely based on their area or location but also consider the amenities and public infrastructure accessible in the surrounding area or community. Moreover, BBMP has granted an extension until July 31, 2024, for citizens to settle pending taxes without incurring penalties,’’ the BBMP Commissioner said.Vinod Jacob, General Manager, NBF said that he is deeply concerned about the recent increase in property tax, which is now based on the capital value, including the guidance value of land and construction value of buildings. “The guidance value is revised by the government almost every year, primarily to increase registration stamp duty charges and revenue to the exchequer. This increase in tax is especially alarming considering that the guidance value becomes relevant only during property transactions when the government collects stamp duty,’’ said Jacob.
Commander (Retd.) MS Srikant, member, the executive committee, Chamarajpet RWA said that the objections were formally submitted on the proposed new property tax methodology. “The guidance value, employed as a benchmark, is deemed inaccurate due to its arbitrary nature and the opaque methodology employed in its determination,’’ said Srikant.
