From Our Special Correspondent
Daijiworld Media Network

Bengaluru, Jan 13: Property tax is set to be hiked in all municipal areas coming under Karnataka Municipal Corporation Act 1976 with the State Cabinet approving an amendment to the Act based on Centre's direction.

The property tax is set to be revised in Bengaluru too. However, the proposal for an increase in property tax against user fee has now been dropped. 

Briefing reporters after the State Cabinet meeting chaired by chief minister B S Yediyurappa, the state law and parliamentary affairs minister J C Madhu Swamy said Cabinet on Wednesday decided to bring the amendment to sections 108, 109 and 109 A of Karnataka Municipal Corporation Act to revise property tax on residential houses and vacant sites to increase property tax in municipal areas based the guidance of the union government.

"We are keeping the proposal to levy user fee pending and are just increasing property tax. Till now, vacant sites had been kept out of the purview of property tax. This is being changed now based on union government direction," the minister said.

He said the amendment to the Municipal Corporations had been mandated by the centre and the state government is required to do it before January 25.

"This will help the state to increase borrowings from institutions. The revision and subsequent increase in property tax will improve the GSDP by 25 %," he added. 

Property owners will get some relief as the basis of calculating property tax has been reduced from 50% of the guidance value to 25% of the guidance value.

Further, vacant sites below the dimension of 1,000 sq. ft. has been exempted from the tax, he said. 

The State Cabinet also approved construction of 9,524 homes for police constables and 510 homes for police sub-inspectors across the state.

In all, 10,034 homes will be constructed over the next five years under the police housing scheme at a projected cost of Rs 2,000 crore.

"This is an annual scheme and project will be completed in five years," the minister said. 

In another decision, the State Cabinet approved Rs 15 crore towards subsidy released to silk growers during COVID 19 times.

The State Government also approved the release of Rs 5 crore this year towards the construction of 325 ft tall bronze statue of Saint Basaveshwara being installed at Sri Murugarajendra Mutt premises in Chitradurga.

"The State Government has approved Rs 20 crore towards the statue project of which Rs 10 crore has been released already. The State Cabinet approved the release of another Rs 5 crore," he said.

Rs 25 crore cultural centre at Banandur village in Ramanagara district in memory of late Balagangadharanatha Swamy of Adichunchangiri mutt has been approved, he added. 

Among other decisions, the State Cabinet approved the release of Rs 200 crore for filling up of 96 tanks in Tiptur taluk if Tumakuru district from Hemavathy and Yettinhole project. 

The State Cabinet also approved upgradation and modernisation of 155 ITIs out of 270 ITIs in the state at a cost of Rs. 4,636 crore, which will be executed by the Skills Development department in collaboration with Tata Technologies.

"Tata Technologies will bring 88% of the share. The government will stand guarantor for Rs. 657 crore for loans in nationalised banks. The state government will have to spend Rs 220 crore towards infrastructure development and cabinet has given approval for this,’’ he said. 

The State Cabinet has approved changes to cadre and recruitment rules of employees in persons with disabilities and senior citizens department to expand on the scope for promotion avenues. It has also extended the lease period for 4.24 acres given to International Flower Auction Board, Bengaluru till 2030-2031 besides deciding to increase the equity in the board till 2030-2031.