For every litre of fuel you buy, you pay a rupee as cess for the city’s infrastructure development. Almost 24% of your property tax goes as cess under three different heads – health (15%), library (6%) and beggary (3%).
BENGALURU:For every litre of fuel you buy, you pay a rupee as cess for the city’s infrastructure development. Almost 24% of your property tax goes as cess under three different heads – health (15%), library (6%) and beggary (3%).
Now, the government has found another way to raise funds for a public project, this time the Namma Metro.
The next time you buy property from private realtors, be ready for a steep hike in the price. The state government has levied a 5% Metro cess on the market value of fresh land developments, to facilitate implementation of the mass rapid transit project.
However, the levy will be applicable only for residential properties coming up on plots of 5 acres and above, and commercial properties on 3 acres and above. The urban development department issued a circular on June 8, mandating the BDA to levy the cess on new layouts formed by private builders. The Bangalore Metro Rail Corporation (BMRC) is expected to mop up an annual revenue of Rs 250 crore with this cess, said UA Vasant Rao, general manager, finance, BMRC.
The levy is not limited to those areas which are or will be connected by the Metro but to all layouts coming up across the city.
BDA commissioner T Sham Bhat told TOI, “The government wants Metro connectivity to reach far and wide in the city, which is why this fundraising option has been finalized. The cess will be applicable to BDA-approved layouts.”
II phase of Metro project yet to start: The first phase of the Metro project (42km network) is expected to be completed by the first quarter of 2016. The second phase (72km) is yet to get off the ground.