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The Municipal body in Bengaluru is willing to increase the property tax on residential and commercial buildings in the city. The BBMP (Bruhat Bengaluru MahanagaraPalike) has proposed to increase the taxes by 20% to 30%, as compared to the last financial year. The new rate will be implemented from the next financial year, according to the authorities. The Municipality is interested in increasing the property tax, as this makes up a large part of the revenue of the civic body. Once the decision is implemented, the municipality will be able to raise an additional revenue of INR 500 crore. Bengaluru is among the leading property markets in India. Investors interested to purchase real estate India often choose Bengaluru as their destination, as it has got a well-developed commercial and social infrastructure. The real estate industry in India has been fast developing over the last few months. Bengaluru is among the top choices for the investors, and increasing the property tax will help the civic body to earn more revenue.
People interested to buy property in Bengaluru generally have a look into the real estate websites for the latest projects. A large number of real estate developers have come up with sophisticated apartments and commercial spaces in the city. As the prices of property in the city are on the rise, they can make good profits in the coming years, renting and leasing these properties off.
As the municipality proposed to increase the tax rates, the honest taxpayers have resisted the decision. The reason is that, the tax collection system has got certain discrepancies. The civic body has not made an honest attempt to bring all the property tax payers into the circle. Besides, the existing payers will have a greater burden, with the added tax they need to pay after the rates are hiked. Eventually, it is necessary to revise the system and make sure that all the property owners pay the tax.
The real estate companies in Bengaluru are carrying out several projects and residents from various parts of the country are interested in buying real estate in the city. In Bengaluru, the municipal body is heavily reliant on revenue that comes through tax. Around 30% of the total income of the civic body comes in the form of tax. Besides, 95% of the tax revenues of the authority comes in the form of property tax. The municipality also controls the grants received by the state from the Centre.Increasing the property tax is an easy strategy to collect more revenue for the body. The last hike was made in 2016 after a long interval of 15 years. Visit the best property sites in India to check out the latest projects in Bengaluru.
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