Following the proposal of guiding value-based tax collection by the local municipal body, Bruhat Bengaluru Mahanagara Palike (BBMP), property taxes in Bengaluru are expected to increase significantly. Experts predict that the proposal will increase already skyrocketing residential rentals. The recent property tax increase in Bangalore is primarily because of a shift in the tax calculation system.
Previously based on zonal classifications, the new system calculates taxes based on the property\'s guidance value (the government-assigned market value) and the built-up area. This aims to make the tax structure more transparent and uniform.
The revised approach often results in higher taxes, especially for properties with increased guidance values. For instance, in 2023, guidance values were raised by up to 50%, directly affecting tax rates.
The BBMP also introduced caps on tax increases, limiting it to 20% per year. However, the accumulated difference will be collected over the following years.
The new system includes charges for common areas in apartments and amenities like telecommunication towers. The BBMP argues this change aligns with the Union Government\'s policies and ensures access to funds from the 15th Finance Commission.
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Property tax is often based on the assessed value of the property. If property values in Bangalore have risen, it's likely that property taxes would increase as well. This can happen due to factors such as urban development, infrastructure improvements, or simply increased demand for real estate in the area.
Inflation can also play a role in property tax increases. As the cost of goods and services rises over time, municipalities may need to adjust property tax rates to keep up with the increased cost of providing services and maintaining infrastructure.
Changes in government policies or regulations related to property taxation can also lead to increases.
Rapid population growth and urbanisation can strain municipal resources and infrastructure, leading to the need for increased property tax revenue to support the growing population and maintain the quality of services.
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Why Property Tax has Been Increased in Bangalore?
bharat
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2024-03-06T11:56:46+00:00 2024-03-06T11:56:47+00:00Comment
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