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Mangalore, July 1 Mangalore City Corporation council has given its approval for the revised self-assessment scheme (SAS) of property tax.

This follows widespread opposition to the existing SAS of property tax.

However, Mangalore City Corporation has to get approval from the Karnataka Government before implementing the revised SAS.

Under the revised scheme approved by the Mangalore City Corporation council, the tax rate for residential property has been fixed based on the plinth area.

Before the revision, the rate was 0.6 per cent of the capital value.

In the revised scheme, the tax rates range from 0.3 per cent to 0.8 per cent of the capital value based on the plinth area.

In the case of commercial and non-residential properties, the tax has been reduced from 2 per cent to between 0.5 per cent and 1.5 per cent.

One of the important demands of industry bodies was to fix a rate structure for industrial property. Existing SAS treats industrial properties on par with commercial ones.

Mr G. Giridhar Prabhu, Chairman of the Large Enterprises Sub-Committee of the Kanara Chamber of Commerce and Industry, said if the corporation has proposed any reduction, it would be welcome.

The chamber had made representations that industrial properties and warehouses be classified separately and not be treated on par with commercial properties.

Though in the revised scheme industrial properties are still placed under the commercial segment, they are under separate tax slabs.

In the revised scheme, industrial units – such as tile factories, cashew processing units, fish processing units, rice mills and coconut oil extraction units – have been placed under the slab of 0.5 per cent of the capital value.

The drying yards of these units have been exempted from tax calculations. The godowns have been placed in the tax slab of 0.5 per cent of the capital value.

Properties related to wholesale trade have been placed in the slabs ranging from 0.5 per cent to 0.7 per cent of the capital value.

Mr Prabhu said Mangalore City Corporation has taken into consideration the factual and realistic assessments of properties, and the changeover is rational.

More Stories on : Taxation | Real Estate & Construction | Karnataka

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