BENGALURU: Deputy Chief Minister DK Shivakumar said on Thursday that the State Government is contemplating bringing in a new system of property tax collection as it is not happy with the existing one.
As part of the new system, it will be made mandatory for offices of the State and Union governments to pay property tax, he told reporters here.
Shivakumar said every property has to be scrutinised to know if its owner is paying tax accordingly or evading it. “We are not satisfied with the existing tax system as only Rs 3,000 crore is being collected. So, we are thinking of a new system of tax collection. I have written to those concerned that government offices should also pay property tax,” he said.
Pointing out that HAL has paid Rs 93 crore tax, he said he has instructed state government offices such as KPTCL to pay property tax. “Let’s collect taxes from the government first. We have to discuss Mohan Das Pai’s recommendations on taxation,” he added.
Shivakumar said all properties, including houses, will be scrutinised as some commercial establishments now pay taxes applicable for residential properties. To a query, he said the self-assessment of property tax can’t be termed effective. It is not as effective as expected, he added.