Karnataka: Powering India's Growth - A report by Deloitte

In addition to the transformative projects within Bengaluru, Karnataka as a state is on the cusp of remarkable growth across 12 key industries. These include Aerospace and Defence, Agro and Food Processing, Automobile and Auto Ancillaries, Capital Goods, Clean Energy, Construction, Education, IT, ITEs and Electronics, Pharmaceuticals and Biotechnology, Startups, Textile and Garments, and Tourism. For a comprehensive understanding of each sector's potential, Deloitte, together with WTC Bengaluru, has conducted an exhaustive analysis, which was unveiled at the esteemed World Trade Centers Association’s 54th Global Business Forum.

Alongside infrastructural expansions and urban transformations, the Government has introduced policies aimed at fostering sustainable growth and positively impacting the socio-economic landscape.

Property Tax - Revised Guideline Value

Recent changes in Karnataka's property market include a 10% reduction in guidance values for purchases until March 31, 2022. This decrease directly aects stamp duty and registration fees, especially for properties exceeding Rs 45 lakh, where the stamp duty stands at 5.6%. Furthermore, the government's decision to raise guidance values by 15-30% is anticipated to bolster revenue and property market values.

Property Tax - One Time Settlement

The Bruhat Bengaluru Mahanagara Palike (BBMP) introduced a scheme oering exemption from interest on unpaid or reassessed tax until July 31, 2024, aiming to encourage property owners to settle outstanding taxes without incurring additional charges. Additionally, penalties for specific properties were either exempted or reduced, including self-occupied non-RCC residential properties, government-provided residential buildings and properties in slums.

Deputy Chief Minister of Karnataka, D.K. Shivakumar estimated the scheme to provide citizens with significant financial relief totalling around Rs 2,357 crore, while the BBMP identified tax evaders and issued notices to them.

Premium FAR Revenue and Development Impact

The introduction of premium FAR in key cities like Bengaluru, driven by the demand for vertical development, particularly along Namma Metro lines and the Peripheral Ring Road (PRR), aims to boost real estate growth and government revenue, especially amid the financial strain of the COVID-19 pandemic. The notification requires 50% of generated revenue to be earmarked for infrastructure development corresponding to the FAR's purpose.

Explore insights and opportunities outlined in the report by scanning the QR code.