Forex

The government will table a bill in the state legislature next week for rationalising property tax in the island city and its suburbs.

Announcing this in the legislative council on Friday, minister of state for urban development Rajesh Tope said, "At present property tax is charged based upon the ratable value. We have proposed that it should be charged based upon the capital value."

Currently, the residential buildings in the city are charged 83.5 per cent property tax whereas the percentage is 112.5 for commercial buildings.

"After the bill is passed, the property tax in suburbs will come down drastically whereas it will rise in the island city... not more than double. I hope the rich residents of the island city will not oppose it," he said.

Tope claimed that the owners who give their property on leave and licence will also benefit after the bill is passed. "Several property owners have moved the court complaining that they cannot afford the property tax as it is based on ratable value. There will be no scope for them to complain after the bill is passed. The tax will be dependent upon type of construction, age, user and area."

He also claimed that the new bill is not aimed for profit-making. "We have adopted the revenue neutral model. We will emphasise on maintaining the income of BMC, rather than increasing it."