Retain SAS Scheme in BBMP, Urges FKCCI

By :  M B GIRISH
Update: 2024-03-06 14:47 GMT
Bruhat Bengaluru Mahanagara Palike (BBMP). (Image:DC)

Bengaluru: Over the draft notification of Bruhat Bengaluru Mahanagara Palike (BBMP) on new system of property tax, the members of Federation of Karnataka Chambers of Commerce and Industry (FKCCI), Bengaluru expressed their objections to the draft notification wanting its withdrawal while retaining the existing Self-Assessment Scheme (SAS), 2000.

FKCCI Senior Vice-President M.G. Balakrishna at a press conference in Bengaluru stated that the SAS was “successfully” implemented and was considered “reasonable” and under the new system of Property Tax, officials concerned will assess property tax based on guidance value, building and vacant property. Balakrishna said guidance value should not be the yardstick for assessment of tax and that the tax should be based only on the service rendered by the BBMP.

He pointed out that officials concerned of BBMP failed to collect approximately 55 percent of the property taxes from tax payers in Bengaluru city and observed that had the officials concerned of BBMP made a concerted efforts to collect taxes there would not have been significant revenue loss and consequently there would not have been any need for the introduction of new tax system for Bengaluru city.

Explaining the grounds for the objections to the new property tax system of the BBMP, the Senior Vice-President said under the proposed new scheme tax adjustments are to made every year with 5 percent increase in guidance value along with annual 5 percent rise besides increase in construction cost which will be a “heavy” burden and as per the notification, industrial building, the land is taxed at 0.3 percent of the guidance value of the land, construction cost of Rs 2,000 per square feet including for structures such as air-conditioner roof sheds.

He observed that such elevated tax rates may prompt industries to relocate to neighbouring States thereby affecting industrial growth in Karnataka and impacting State’s revenue.

Balakrishna said to meet Chief Minister Siddaramaiah and Deputy Chief Minister D.K. Shivakumar who is also the Bengaluru incharge Minister urging to initiate steps to withdraw proposed new system of property tax in Bengaluru.


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