Traders seek review of new property tax scheme

City traders have urged Governor Rameshwar Thakur to withhold the implementation of the new capital value-based property tax scheme (CVS) on the grounds that it would herald 'inspector raj'.

A meeting of the traders under the banner of Federation of Karnataka Chambers of Commerce and Industry (FKCCI) on Tuesday passed a resolution urging the governor to keep the new scheme in abeyance till the 'anomalies' are rectified by Greater Bangalore City Corporation (GBCC).

"The CVS is being levied on the basis of the land value, type of building and construction material used. This is highly irrational as the evaluation is done by the municipal revenue officials who can be arbitrary. This results in unleashing the inspector raj on the citizens," said B K Goyal, Managing Committee member, FKCCI.

According to him, the land value and the current value of the properties are relevant only at the time of sale or transfer of the property. "Why should the same criteria be applied for levying property tax? We are willing to pay an enhanced property tax if the GBCC improves the quality of its civic services. However, the quality of the civic services remains poor. The GBCC is not in a position to seek higher taxes," he contended.

He said that the CVS is in operation in western countries where property value fluctuation is not as high as in Bangalore. "In some areas, the property tax to be paid under CVS will be 500 per cent more than what is being under the existing scheme. This will be a burden on property owners, especially residential property owners," he stated.

Goyal said the existing Self Assessment Scheme (SAS) based on annual rateable value should be continued since it is people friendly.

"The existing scheme has been accepted by the property owners. The GBCC, instead of widening the tax base by including new property owners, has taken the wrong way to mobilise resources," he said.