Bengaluru will become costlier for homeowners from April 1; here's why

Karnataka government's approval to levy user fees for waste disposal could significantly impact Bengaluru residents' property taxes, starting April 1.

Starting April 1, Bengaluru's property owners may face an increase in their tax bills as the Karnataka government has approved a user fee for domestic waste generators. The Bengaluru Solid Waste Management Ltd (BSWML) proposed this fee in November last year, though a formal order is yet to be issued. 

The user fee has been sanctioned by the Urban Development Department, led by Deputy Chief Minister DK Shivakumar. The fee is justified as a means to fund services such as door-to-door waste collection and disposal, although the methods have faced criticism for being unscientific. The BSWML anticipates that this fee will generate around Rs 600 crore annually, though projections suggest it could be even higher. 

The user fee will be incorporated into the property tax and will vary based on the built-up area of a building. Six slabs have been determined, with fees ranging from Rs 10 to Rs 400 per month. Buildings up to 600 sq ft will incur the lowest fee, while those exceeding 4,000 sq ft will pay the maximum. This addition is expected to significantly increase the annual property tax for Bengaluru's residents. 

For bulk waste generators, such as large apartment complexes and commercial institutions, the government has permitted BSWML to charge Rs 12 per kg of waste if they do not utilise an empanelled agency for processing. This surcharge adds another layer of financial obligation for these entities, potentially affecting their operational costs. 

The existing Solid Waste Management (SWM) Cess, currently a component of the property tax, will remain unchanged. This cess is primarily used for maintaining public spaces, such as street cleaning. The introduction of the user fee is seen as a way to supplement these funds, although it may be controversial among taxpayers. 

Critics argue that the user fee, while intended to cover the costs of waste disposal, lacks scientific rigour in its implementation. The effectiveness and fairness of this approach may be debated, especially given its potential to increase the financial burden on citizens. However, the government insists that such measures are necessary to improve waste management in the city.