MCC to conduct fresh survey of mobile towers

Karnataka Municipalities and Certain Other Law (Amendment) Bill 2014 passed in Assembly seeks to levy tax on telecommunication towers Earlier attempts to tax tower operators scotched as existing law does not empower local bodiesProperty owners earning rental on towers without paying tax to local bodies, say officialsProposed amendment to building bylaws: any tower installed on a building will be construed as part of structure and qualify for tax

Published - December 18, 2014 01:36 am IST - MYSURU

The Mysore City Corporation (MCC) will conduct a fresh survey of mobile towers in the city in a bid to bring them under the tax net.

This follows the passing of the Karnataka Municipalities and Certain Other Law (Amendment) Bill 2014 in the Assembly on Tuesday. The Bill seeks to levy tax on telecommunication towers or advertisement structure.

Though the MCC was keen to bring mobile towers under the tax net earlier this year, it was scotched as the existing law does not empower local bodies to tax communication tower operators. However, a court ruling provided for an amendment to the law to pave way for their taxation.

MCC Commissioner C.G. Betsurmath told The Hindu that earlier efforts to bring mobile towers under the tax net had not succeeded. However, consequent to the passing of the Bill, steps will be initiated to bring them under the tax net.

“I have asked revenue officials from the respective divisions to furnish details about the number of mobile towers in their jurisdiction. This will take some time as the data has to be updated,” he added.

Mr. Betsurmath said the provisions of the new Bill had to be studied in detail. If implemented, the MCC’s tax base would further widen, augmenting its income. The earlier initiative to bring mobile towers under tax net stemmed from a growing realisation that property owners were earning handsome rental without paying tax. MCC officials told The Hindu that property owners were collecting anywhere up to Rs.15,000 per month for letting out rooftops or even vacant sites for establishing mobile towers.

Banking on amendment

The authorities are also banking on the proposed amendment to the building bylaws, as per which any tower installed on a building will be construed as part of the structure and thus qualify for tax. If the amendment is introduced the MCC will be able to collect rental as part of property tax.

Transmission towers have been mushrooming even in residential areas in MCC limits. Concerned citizens have complained in the past about the lack of any monitoring mechanism as towers have been erected even on old buildings whose structural stability is suspect.

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