GK Shelters highlights the possibility of 20-25% hike in Property Tax in Bengaluru
The tax on property is expected to increase by 20-25% from the next financial year in Bengaluru. GK Shelters, a prominent name in real estate industry pointed out that the hike in the property taxes is about 20% for residential and 25% for non-residential properties. The proposal for revision and hike in property taxes is accepted by the Karnataka government which will have a major impact on building and plot owners in Bengaluru.
Mayor BN Manjunath Reddy stated that the decision could have been taken at the government level. But he was not sure about the exact revision in tax. He said that, “We had proposed a 20% revision.”
The Bruhat Bengaluru Mahanagara Palike is likely to garner an additional Rs 500 crore in revenue. At present, BBMP is targeting Rs 2,000 crore through property tax.” BBMP’s finance wing officials stated that from April 2016, the new rates would be applicable. GK Shelter group highlighted the fact that the property taxes are being revised after a gap of seven years. The hike was defended by the urban development department officials who highlighted the fact that the Bruhat Bengaluru Mahanagara Palike has insufficient funds to take up new projects. However the order is still not confirmed by Bengaluru minister Ramalinga Reddy and TM Vijay Bhaskar, additional chief secretary for the urban development department.
“I am not sure whether the department passed the order, as I am only in charge. I will have to check with additional chief secretary D Satyamurthy.” said Bhaskar who had proposed a property tax hike as BBMP administrator.
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