In the Karnataka Municipalities Act, 1964 (Karnataka Act 22 of 1964), in section 99, for sub-section (1), excluding the proviso, the following shall be substituted, namely:-



"(1) The duty on transfers of immovable property shall be levied in the form of a surcharge at the rate of two percent of the duty imposed by the Karnataka Stamp Act, 1957, on instruments of sale, gift, mortgage, exchange and lease in perpetuity, of immovable property situated within the limits of a smaller urban area:"