K’taka panel mulls cut in tax slabs for CVS

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A Cabine sub-committee, formed by the Karnataka government, is likely to recommend a cut in the tax slabs for the capital value system (CVS) and reduce the penalty under Sakrama scheme for regularisation of building bylaw violation.

Minister for transport R Ashok hinted that owners of sites, especially those in the jurisdiction of the Bruhat Bangalore Mahanagara Palike (BBMP), may get substantial relief as the government plans to introduce a one-time comprehensive measure while regularising unauthorised sites and houses.

Ashok, who heads the panel, said that several suggestions including a drastic reduction in the penalty rates for owners of 20x30 revenue sites and 30x40 revenue sites had been placed before the committee. The sub-committee will submit its recommendations within a month.

Earlier, there had been widespread protest against the implementation of CVS in BBMP jurisdiction by residents’ welfare association, as rates under the new scheme were high. Governor Rameshwar Thakur had directed BBMP not to implement CVS for collection of property tax till a new government was formed.

Sakrama ran into trouble on account of protest from citizen groups alleging heavy penalty for regularization of building violations in urban areas.

After the new government was formed, the committee was constituted by the Cabinet to revisit the CVS in BBMP limits and Sakrama scheme and recommend changes.

Ashok said the committee was mulling over creation of a separate fund to channelise penalty collected under Sakrama scheme from a particular region back for the development of the same locality. While 50% would go for the development works of the locality, the balance would be utilized for improving infrastructure of the entire city, he said.

Sakrama scheme would be only a one-time relief measure. Another suggestion was that the penalty paid by those whose violation exceeds the maximum permitted should not be processed till the portion of building which was built against the norms was demolished.