The Hindu Business Line : Karnataka retains SAS for properties in Bangalore

Karnataka Government today decided to retain the Self Assessment Scheme (SAS) introduced in 2000 for calculating property tax in the Bruhat Bangalore Mahanagar Palike (BBMP) limits.

The decision comes after a long debate by the successive governments and in public forum over choosing between Capital Value System and SAS.

Briefing mediapersons after a Cabinet meeting chaired by the Chief Minister, Mr B.S. Yeddyurappa, here today, the Home Minister, Mr V.S. Acharya and the Law and Parliamentary Minister, Mr Suresh Kumar, said an Ordinance would be promulgated for the implementation of the SAS retrospectively from April this year.

20% tax hike

Under the modified SAS, the rate of tax has been increased by 20 per cent to provide funds for infrastructure facilities. Property tax had not been revised in the city for eight years.

Considering the depreciation in value of old buildings despite the enormous jump in real estate prices, the panel has favoured 50 per cent concession to people using the property for own residential purposes. However, the existing rates would be doubled for vacant plots, they said.

The exact details on the stipulation of rates for new and old buildings would be specified after the guidelines are drawn after issuing the Ordinance.

Dr Acharya said the Cabinet decision would help the (BBMP) to collect taxes from 13 lakh properties in its limits. This will bring additional revenue of Rs 200 core to BBMP. The total tax collection from house tax is expected to touch Rest. 1,500 core during the current fiscal year.

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