Bengaluru: The Federation of Karnataka Chambers of Commerce and Industry demanded that BBMP withdraw its draft notification proposing a new property tax assessment method based on guidance value of the property.FKCCI said industrial buildings and lands are proposed to be taxed at 0.3% of guidance value of the land and construction cost of Rs 2,000 per sqft, including structures like AC roof sheds. Such elevated tax rates may prompt industries to relocate to neighbouring states, affecting industrial growth in the state and impacting revenue. FKCCI president Ramesh Chandra Lahoti demanded that BBMP retain the existing self-assessment scheme for the benefit of citizens. The federation filed its objections to the proposed new property tax assessment method alleging that about 45% of honest taxpayers of the city will be punished with higher tax. It claimed that BBMP failed to collect 55% of property tax. The industry body said 45 days are not enough to file objections to the proposed new system since it is complicated to understand. Property guidance value shouldn’t be taken as a yardstick for assessment of tax; it should be based only on service rendered by BBMP. Property tax should be assessed based on types of building, and not on guidance value, it said.
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