Recently, a 2% property tax was levied on Bengalureans for transportation.
The Karnataka cabinet decided on Wednesday to increase property taxes in all municipalities except Bengaluru. It did so with the Cabinet, led by Prime Minister BS Yediyurappa, who decided in 1976 to optimize the Karnataka Municipal Corporation’s law, recently passed the Bruhat Bengaluru Mahanagara Palike Bill, 2020.
Reports indicate that all residential and commercial properties in the state are currently taxed between 0.3% and 1% of the benchmark, and the Cabinet has decided to increase that to 0.5% and 1.5%. While 50% of the benchmark of the property is now considered the net present value for tax purposes, reports suggest it will now be changed to 25% of the benchmark. Additionally, vacant lots that are now exempt from property tax will be subject to property tax with these new changes.
On the subject, Justice and Parliament Minister JC Madhuswamy said that these changes in the tax structure of the state were made in accordance with the guidelines of the Union government. With this change, the state government could borrow another 0.25% of the country’s gross domestic product.
He added that union government policies have also suggested raising the property usage fee as well. But the state government will not change that for the time being.
This decision by the state government came after it recently approved a 2% “road tax” on its property tax in Bengaluru.
On other decisions made in the cabinet meeting, Rs 5 crore will be spent to remedy a serious shortage of police quarters. A 325-foot bronze statue of Basaveshwara will also be built in the Chitradurga district of Murugharajendra Mutt.