Bengaluru, property tax will go up by 20-25% from April 1, says report

The Bruhat Bengaluru Mahanagara Palike (BMPP) has decided to hike property tax on residential deals by 20% and no non-residential properties by 25% from April 1, a report in a leading daily says.

According to the report, residential property owners in the BMPP's zone A, under the revised tax rate, will have to pay Rs 3 per sq ft (i.e. Rs 3,000 per 1,000 sq ft) while non-residential property owners will have to pay Rs 25 per sq ft (i.e. Rs 25,000 per 1,000 sq. ft.).

The new tax rates will help the exchequer earn an additional Rs 600 crore annually, the report says.

However, this isn't where the woes end. The government is also planning to hike the guidance value of properties, effective from April 1.

BMPP had last revised the property tax in 2008 based on the 2007 guidance value rates, however, the latter has been revised thrice since, the report says.

Property tax is calculated on the basis of the guidance value.of 

According to the report, BMPP collected Rs 2,000 crore in property taxes last year alone.