The Lok Sabha election is likely to be the reason
The government has given some relief to the residents of Bengaluru. The property tax hike, which was to be implemented on April 1, has been postponed. A new method of property tax calculation will be followed as of April 1, 2024. However, it has been postponed with a fear that people might turn against the government if the property tax is increased, as Lok Sabha elections are soon approaching. Karnataka Deputy Chief Minister DK Shivakumar clarified this.
He said that there is a rumour on social media that property taxes are increasing in Bengaluru, but there is no such thing. He clarified that property tax will be collected according to the existing rates, and there is no change in this. He asked people not to believe in such rumours. It was earlier decided by the Brihan Bengaluru Mahanagara Palika (BBMP) to implement the value-based property tax system on April 1. If implemented, under the new tax regime, the tax on residential properties will be doubled from the current rate, and the public expressed a lot of concern regarding the same. Also, depending on the categories, the property tax in the commercial sector will increase by three to five times.
Currently, there are seven categories of rental properties, such as paying guest accommodation, convention halls, or malls, but these are not considered in the new system. Traders and property owners have estimated that BBMP’s annual tax will increase by at least 40 percent, as the guidance value has been increased by 33 percent. Meanwhile, a BBMP said that the tax will increase by 10 to 20 times under the new system. He said that this is not a new system; a value-based property tax system is being implemented in almost all the cities in Karnataka. However, in the wake of the Lok Sabha elections, the Congress government in Karnataka has backed down on this for now.
