Cash-crunched civic body eyes private halls to boost profits

Delayed budget and lack of funds has BBMP grasping at straws. Suggestion to hike tax on private community halls, which will generate about Rs 80 crore, is doing the rounds

Delayed budget and lack of funds has BBMP grasping at straws. Suggestion to hike tax on private community halls, which will generate about Rs 80 crore, is doing the rounds
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With an unprepared budget, lack of funds and after facing the wrath of residents across the city, the civic body is now trying every possible means to generate funds. The BBMP has now proposed to hike the tax rate on private community halls, which could bring in funds of about Rs 80 crore. Yediyur Corporator N R Ramesh, who suggested the idea at the BBMP council, claimed that the palike could generate the amount if the suggestion was implemented.


Private affair: There are 421 private halls that are registered with the
BBMP. File pic

"There are about 421 private halls, out of which 73 charge about Rs 2 lakh per hire. Around 169 halls charge Rs 1 lakh and the rest charge Rs 30,000 to 80,000 per hire. So far, private owners have been paying 1.5 per cent to 2 per cent as taxes, but if we increase this to 10 per cent, then the corporation will be gaining Rs 60 crore, which can go towards ward development," said Ramesh.

Whistle blower
Ramesh had earlier been involved in a spat between cable operators for usage of optic fibre cables over the BBMP premises, which led to a stand-off. However, the matter was settled after a prolonged discussion between cable TV operators and BBMP officials. Mentioning this fact in the council meeting yesterday, Ramesh highlighted the benefits of increasing the tax rate.

Oppn displeased
The opposition however was not prepared to listen to the idea and remained adamant on the budget issue. Claiming that the hike would inconvenience the public, the opposition criticised the ruling BBMP council.
"It is not a feasible solution to pump the funds. This idea would only result in taxing the public indirectly through marriage and community halls. As a responsible party in the opposition, the Janata Dal will oppose this move and if the subject is raised in the council, we will stage a walk out," said Padmanabha Reddy, JDS opposition member in the BBMP council. However, opposition Congress leader Uday Shankar opined that the idea was innovative, but could be problematic. "The existing corporation community halls need a face lift for sure, but by taxing private halls, the ruling council will only add the burden on the public. Private hall owners do not need to be punished just because people don't hire our corporation halls because of cleanliness issues," Uday added.

Raising tempers
Private hall owners are not happy with the move either and claim that if they are taxed more, they'll be forced to make clients pay extra to cover up. "We've been paying service tax and luxury tax regularly to the BBMP. If they increase the taxes now, we will be left with no other option but to charge the public extra by increasing our rates," said S Devdasan, manager, Hudson Marriage Complex.