Starting October 1, property buyers will have to shell out more for registration as the new revised guidance value, hiked by an average of 25% to 30% over the existing rates, will come into effect in the city. The new guidance value will come into effect in phases across other districts of the State in the coming weeks.
Revenue Minister Krishna Byre Gowda said while the practice was to revise guidance value every year, there has been a gap of five years, mainly due to the pandemic. The last time the guidance value was revised was in 2018-19, which came into effect on January 1, 2019. “More than hiking the guidance value, we have tried to bridge the market value and guidance value. This has worked out to an average of around 25-30% hike. But in some cases, the hike is 50% as well,” he explained.
“Where the market rate and guidance value are close enough, we have hiked the guidance value by 10%; where the market value is nearly 200 times the guidance value, we have hiked it in the range of 25-30%, whereas in some places like in Electronics City, the market value is 500 times more than guidance value, in such cases, we have hiked it by 50%,” the Minister explained the rationale behind the revision, adding that in some places guidance value had also been reduced to keep with market trends.
Chief Minister Siddaramaiah, who dumped the Budget presented by his predecessor Basavaraj Bommai for 2023-24 in February and presented a new Budget in July earlier this year, did not hike the stamp duty but revised the revenue target from Stamps and Registration to ₹25,000 crore, from ₹19,000 crore set in February. This is one of the sources from which the government seeks to mobilise additional revenue to fund its “guarantee welfare schemes”.
