Buying realty in/around Bengaluru will be expensive

From ET Realty

BENGALURU: Buying plots or homes from private realtors in and around Bengaluru is set to get costlier. The state government has proposed a 2% cess on the market value of fresh layouts to implement projects for the Ring Road, drinking water, rapid transit and slum development (0.5% each). The levy will be only for private layouts.

“The BDA has submitted a proposal, and it’s before the urban development secretary,” BDA commissioner T Sham Bhat told TOI.

The BDA came up with the proposal because its earlier one – to levy a 5% Metro cess on the market value of fresh land development – was turned down by the Karnataka High Court, which termed it exorbitant. The new proposal has been drafted keeping in mind the court’s directive, he added.

The state government has been collecting cess for the city’s infrastructure development by charging Re 1 on every litre of fuel sold in the state. Almost a fourth of property tax is collected through cess: health (15%), library (6%) and beggary (3%). The BDA had levied several cesses while granting sanction for layouts, but many developers defaulted on payment.

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