Nation Current Affairs 01 Feb 2017 BBMP loses out Rs 5, ...

BBMP loses out Rs 5,500 crore in property tax

DECCAN CHRONICLE. | SHRINIVASA M
Published Feb 1, 2017, 6:37 am IST
Updated Feb 1, 2017, 7:04 am IST
Economic Survey points to anomalies in tax collection n Palike nets Rs 1,013 crore, instead of Rs 6,526 crore.
 BBMP can implement most of its projects without external support if it plugs collects property tax more diligently.
  BBMP can implement most of its projects without external support if it plugs collects property tax more diligently.

Bengaluru: Fund shortage is the most common excuse given by the BBMP not to take up development projects. But in reality, the BBMP can implement most of its projects without external support if it plugs collects property tax more diligently.

The Economic Survey 2016-17, presented by the Union Finance Ministry on Thursday, has a separate chapter on the failures of BBMP in collecting property tax. The survey report states that the BBMP has collected Rs 1,031.8 crore as property tax in the financial year 2015-16, but the potential was Rs 6,526.7 crore.

 

This means the BBMP has lost around Rs 5,500 crore tax because of unscientific calculation of Floor Space Index (FSI) ratio and guidance value. The report also pointed out that property tax collection can touch Rs 8,693.8 crore if all the properties are brought under the tax net.

The report stated that the satellite image of BBMP shows the city spanning across 784 sqkm with nearly 50 per cent built-up area. The potential property tax has been estimated by fixing a ward as the basic unit for identifying the net built-up area, property tax unit (guidance values) and Floor Space Index (FSI) ratio.

 

The report stated that there are 198 wards in the city and properties in these wards have been classified under six zones, from A to F, based on the streets they are on, which determines their guidance values. This classification determines the Unit Area Value (UAV) used for the calculation of property tax.

The average age of properties has been assumed to be around 10 years, based on which a depreciation rate of 10 per cent is applied in the computation.

To accurately capture FSI ratio values across establishments, the report has considered three scenarios, minimum, maximum and average value, based on their respective values by the 12 zones. The estimate indicates Bengaluru has the potential to collect 4-7 times of its current property tax revenue.

 

Segregate waste or pay fine from today: BBMP
The BBMP that failed to get garbage segregated at source all these years has now taken a tough stand. Starting Wednesday, pourakarmikas have been told not to pick unsegregated waste. Till clean up marshals are appointed, BBMP officials will slap fines on residents who hand over unsegregated waste, indulge in littering, spitting and urinating at public places.

Mayor Padmavathi said, “We are facing a lot of problems because of unsegregated waste. Processing plants at Mavallipura, Manduru and Bingipura were shut because they could not process unsegregated garbage. If garbage is not segregated at source, we may have to close down operational plants too.” She said, “Garbage segregation has improved from 15 percent to 45 percent after I took charge. In the coming days, we will significantly improve the segregation.”

 

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Location: India, Karnataka, Bengaluru




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