BMC moots hike in integrated tax | india | Hindustan Times
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BMC moots hike in integrated tax

THE BHOPAL Municipal Corporation (BMC) has proposed to increase the integrated tax by 20 per cent. So far, the BMC is realising the integrated tax at a rate of 10 per cent of property tax that is now proposed to be increased at 30 per cent of property tax.

india Updated: Apr 25, 2006 13:18 IST

THE BHOPAL Municipal Corporation (BMC) has proposed to increase the integrated tax by 20 per cent. So far, the BMC is realising the integrated tax at a rate of 10 per cent of property tax that is now proposed to be increased at 30 per cent of property tax.

The BMC administration has put forward several proposals regarding the property tax rationalisation and increase in the integrated tax for the discussion in the BMC council meeting to be held on April 29.

The BMC had realised the integrated tax at a rate of 30 per cent of property tax from year 2001-02 to year 2003-04. However, BMC had to reduce the integrated tax as the State Government declared the ceiling of 10 per cent. Now, the State Government again revoked this ceiling clearing the way of increasing the integrated tax.

It was proposed that the BMC would also realise the urban development cess at the rate of 25 per cent of lease rent, if it were more than Rs 10,000. This would be five per cent more in case of commercial properties.

The property tax rates are also proposed to be fixed according to the cost of land. The base of fixing the cost would be Collector’s guidelines. The BMC has divided the areas into seven regions. Separate rates are proposed for every region. The BMC has also proposed six per cent rebate in property tax for the house owners who have installed the water recharge device.

Similarly, the rebate is also declared for those who pay their property tax in advance. The surcharge would be levied at the rate of 15 per cent on the defaulters. It is proposed that 25 per cent more tax would be imposed on the buildings on the main roads and markets.

Besides, the BMC’s general council agenda included the rationalisation of licence fee and increase the fee for the change of title.

The proposal for the renewal of lease agreement with the shopkeepers at Categorised Market is also included in the agenda. The Bharatiya Janata Party (BJP) corporators, who constitute majority in the BMC general council, have already given consent for the proposal related to rationalisation of property tax.

…and water tax, too
DESPITE OPPOSITION from the Bharatiya Janata Party (BJP) corporators group, the Bhopal Municipal Corporation has proposed increase in the water tax rates for domestic water taps to Rs 160 per month per connection. This rate would be meant for the financial year 2006-07. This issue was included in the agenda of BMC council meeting slated for April 29.

It was proposed that the rates would be increased at rate of Rs 10 per year from now onwards. Therefore, the rate for the domestic connection holders would be at Rs 200 per month in year 2010. The BMC administration said that the proposal is being forwarded according to the conditions of Asian Development Bank loan. The ADB is providing loan for changing the dilapidated pipeline of old city and upgradation of existing filtration plants.

..also to widen tax net
POOL GAMES, internet cafes, marriage bureaus, agents of companies, and offices of companies etc are being included in the tax net by the Bhopal Municipal Corporation (BMC). The BMC proposed to impose the licence fee on these trades.

While the BMC administration also proposed to rationalise the fee for old licence holders, it has also proposed include new ones in the tax net. The people having the commercial godowns of less than 300 square feet will have to pay at Rs 1000 for the licence fee.

The licence fee for those having more than 300 feet godown would be Rs 2000. The commission agents, showroom owners, sales, pickle shops and super bazaars etc would also be required to pay the licence fee.