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4:51 AM
Eduwaves-Transforming 'd' Education
The funds-starved BBMP is eyeing private educational institutions to shore up revenue. 'You collect donations, so pay us higher tax,'' say the members of the tax and finance committee who are preparing the BBMP budget 2011-12.
The committee also plans to mobilize revenue from marriage halls and OFC companies in the city. So far, educational institutions used to come under charity institutions and were paying only 25% of the total property tax. But from now on, they might have to shell out Rs 3-5 per square feet. "Private schools and colleges collect huge amount of fees and donations, and we have described them as charity institutions. There is scope to enhance the tax for these institutions," Manjunath Raju, tax and finance committee chairman, told TOI.
There are about 4,000 aided or unaided private schools within the BBMP limits and about 600 degree colleges coming under the ambit of Bangalore University.
With this move, BBMP expects about Rs 50 crore revenue annually. However, there are chances of the state assembly turning down this proposal as most of the MLAs own educational institutions and they might not approve the same.
Even serviced apartments are expected to be brought under the new tax net.
"Air-conditioned serviced apartments will have to pay about Rs 20 per sqft to the city corporation. There are about 680 marriage halls in the city and they will also have to pay Rs 8-20 depending upon the services they offer to the customers," the chairman said. There are about 73 banquet halls in the city which charge about Rs 3 lakh per day.
The committee also plans to mobilize revenue from marriage halls and OFC companies in the city. So far, educational institutions used to come under charity institutions and were paying only 25% of the total property tax. But from now on, they might have to shell out Rs 3-5 per square feet. "Private schools and colleges collect huge amount of fees and donations, and we have described them as charity institutions. There is scope to enhance the tax for these institutions," Manjunath Raju, tax and finance committee chairman, told TOI.
There are about 4,000 aided or unaided private schools within the BBMP limits and about 600 degree colleges coming under the ambit of Bangalore University.
With this move, BBMP expects about Rs 50 crore revenue annually. However, there are chances of the state assembly turning down this proposal as most of the MLAs own educational institutions and they might not approve the same.
Even serviced apartments are expected to be brought under the new tax net.
"Air-conditioned serviced apartments will have to pay about Rs 20 per sqft to the city corporation. There are about 680 marriage halls in the city and they will also have to pay Rs 8-20 depending upon the services they offer to the customers," the chairman said. There are about 73 banquet halls in the city which charge about Rs 3 lakh per day.
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