BBMP Plans to Bring PG Housing Under Commercial Tax Bracket

PGBangalore:  According to Bruhat Bengaluru Mahanagara Palike (BBMP), if a residence accommodates 12 or above paying guests then that accommodation will be counted under commercial building and higher taxes will be charged.  Even the rent rate may increase, marginally.BBMP council currently sanctioned the plan of bringing PG accommodations as well as service apartments under commercial tax category. Commercial tax will be charged from this building, according to its location.The municipal corporation of Bangalore has total six regions for commercial taxation from A to F. A zone pays the highest tax as it comprise of high-class localities and central business districts. However the latest rule will not have any major effect on the smaller accommodations. The revenue is expected to earn around Rs. 60 crore from this new rule.According to the corporators, BBMP should determine the exact number of such accommodations. As per the evaluation, there are only 600 PGs whereas the count may be above 8,000. However, the people dwelling in PGs, especially students have to suffer from this new rule due as they may have to pay hiked rentals.  Many students have to say that the owners increase the rentals without any notice and they are already paying additional amount as maintenance charges.Managing Director of one of the women’s hostel in Bangalore said that, the new move is beneficial as the corporation would be able to track the people who provide such accommodations without license.  Hostels pay property tax and renew their licenses annually by paying good amount but there are many PGs which do not pay any tax and possess license. Such PGs have not come under the notice of BBMP. However the rise in the rent should not affect the students as they will be assured with safety.займ на карту без отказов круглосуточновзять кредит онлайн

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