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BBMP axing the tax for tech parks, losing cash

BBMP commissioner says the state has started a survey to enumerate buildings in Bangalore and other cities.

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Yet again, the BBMP has been blamed of undercalculating and underrecovering property tax. This time, it has been accused of overlooking tech parks. At the council meeting on Wednesday, Yediyur corporator NR Ramesh said the BBMP can collect more than Rs600 crore-Rs700 crore as property tax if it includes all the tech parks in its limits.

He said as per the BBMP’s revenue department, there are 13 tech parks in its eight zones whereas the actual number is 22. He said there are 18 of these in Mahadevapura and on Yelahanka Outer Ring Road alone. He added that the BBMP’s records say that 130 buildings have been sanctioned and 89 occupancy certificates have been issued.

Ramesh added that if one compares the amount the tech parks on Outer Ring Roads owe the BBMP as tax and the amount they have paid, one will find the BBMP has lost Rs62.24 crore in tax from 2008 to 2011. He further pointed out that from another 13 tech parks, the BBMP earned `60.97 crore as property tax and it ought to pay about Rs700 crore.

Continuing his tirade against the BBMP’s miscalculations, Ramesh said even as tech parks in the BBMP limit occupy about 3.5 crore sq ft, only 69 sq ft of this area comes under its Self-Assessment Scheme to calculate tax. He said it is unfortunate that the tax levied on these areas is similar to the one levied on IT/BT companies. Ramesh said revenue inspectors cannot assess 22 tech parks in the BBMP limits as the companies do not allow the officers inside the building. Adding that the BBMP does not have equipment to measure the property, he said Electronic Total Station equipment—which costs Rs5 lakh—could be used to measure the IT and business parks.  In reply, BBMP commissioner MK Shankarlinge Gowda said the state government has already started the survey of Urban Property Ownership Register (UPOR) to arrive at the number of building in Bangalore, Mysore and other cities.  He added that the government has ordered the BBMP to suggest 100 wards to take up UPOR on pilot basis.  Gowda asked the corporators to suggest the wards for the same.

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