FKCCI has been actively opposing the property tax hike proposal of earlier congress government, which was based on CVS. After the change of government, BJP set up a committee under Minister Ashok, which had a public hearing on this issue of property tax in Ravindra Kalakshetra some time back. There he gave an assurance that the maximum tax increase for any property will be restricted to 20% over and above that paid last.
However the proposal worked out by Mr. Subramanya, the BBMP commissioner tells a different story. The gross tax increase calculated for several example cases by FKCCI shows that minimum increase now is 30% for all property tax payers in Bangalore. This is not according to what the minister promised in the open meeting at RK.
Hence FKCCI called for a meeting with all the 28 Bangalore MLAs and the RWA reps on 10th this month, to appraise them with the above implications. This was attended by the following MLAs:
Sarvasri,
1. George KJ
2. Ramalinga Reddy
3. Harris
4. Dinesh Gundu Rao
5. Narendra Babu
No other MLAs including those of ruling BJP attended the meeting . The president of FKCCI Mr. Muralidhar D sent a letter to all of RWA reps requesting them to meet their respective MLAs not attending the above meeting called by FKCCI. Accordingly I met Sri Raghu our BJP MLA from CV Raman Nagar constituency. Sri Raghu was of the opinion that the tax increase should have been between 5 to 15%. He felt that if FKCCI can get the support of all 28 Bangalore MLAs on this subject our objective of restricting the tax burden to 20% can be achieved.
The only alternative left to us is that FKCCI arranges for a second meeting with the BJP MLAs. Now Sri Raghu knows that the tax increase based on the final legislation passed is more than 15% which according to him is not justified. It Was only unfortunate that he became a party to the passing of the current property tax increase bill, in spite of this.
This shows that we, the citizens, have to be more diligent and organized to keep in touch with our MLAs.
PSA
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Slip between the cup and the lip
PSA, Thanks for the post. I was under the impression regardless of what the calculation shows up the proposal was to limit the collection of tax to a cieling of 20% over the previous assessment. So is BBMP applying the ceiling at the collection point?
How is your MLA committing between 5% and 15%. Is he sure all houses will show that increase or does he believe the cap can be anything between those figures? Per him is the cieling also going to be subjectively applied then? Who should I believe?
Just curious, do we have to show the previous year assessment for application of the cieling, in which case I am screwed because I have a new house. I am waiting for a lot of hearings and commotion to die down before I file.
No Cap as of now.
I don’t think there is any cap at collection point. The notification does not talk of any cap. There would be no grouse if the cap was there already. However FKCCI is requesting for a cap of 20% for two years. Below is the resolution passed at FKCCI on 10th Feb 2009:
“ This meeting of office bearers of the RWAs and FKCCI resolved that……..property tax for 2008-09 and 2009-10 with a cap of 20% on the gross taxes paid as per SAS 2000 for old BMP area…..may be accepted. “
The CV Raman Nagar constituency MLA Raghus statement was only a casual statement made to me when I met him on 2009-02-20. It is only his personal opinion. In spite of his personal opinion he had to became a party to the government order.
The Notification is very clear. All of us have to pay the taxes for this year at the new scale only, including new houses. There is no cap. One has to pay the notified new scale tax for new houses, since the notification rates are applicable for immediate enforcement.
PSA