The Bruhat Bengaluru Mahanagara Palike (BBMP) urged telecom operators to clear their property tax dues under the One Time Settlement (OTS) scheme, which ended on November 30, offering waivers on interest and minimal penalties. With around 10,000 telecom towers in Bengaluru, many operators have outstanding taxes since January 2015, totaling over INR 100 crore. The tax, set to increase from INR 7,540 in 2014-15 to INR 19,000 in 2024-25, will double for unpaid dues after December 1. BBMP's structured framework and incentives aim to streamline tax collection and ensure compliance, addressing long-standing disputes with telecom operators.
Last week, the Bruhat Bengaluru Mahanagara Palike (BBMP) reached out to telecom operators, urging them to clear their outstanding property tax dues before the One Time Settlement (OTS) scheme which ended on November 30. This initiative aimed to help telecom companies avoid additional penalties and interest on their overdue payments.
Currently, there are nearly 10,000 telecom towers in Bengaluru, many of which have not paid property tax since January 9, 2015. BBMP officials estimate that the total dues amount to over INR 100 crore. According to a recent high court order, property tax for telecom towers has been applicable since that date, making it crucial for operators to address their financial obligations promptly.
The OTS scheme offers significant benefits for telecom operators. It provides a full waiver on interest and limits penalties to just INR 100 per year for outstanding amounts. This is a considerable incentive for operators to settle their dues, especially since the tax rates are set to increase substantially after the deadline. For instance, the annual tax per tower was INR 7,540 for the financial year 2014-15 but will rise to INR 19,000 for 2024-25. If operators fail to pay by December 1, these amounts will double, leading to even higher financial burdens.
In a recent circular issued by BBMP Chief Commissioner Tushar Giri Nath, specific guidelines were outlined for the collection of property tax from telecom operators. The circular emphasized the importance of timely payments and established a structured tax framework for the years since 2014. For example, a telecom operator that has not paid property tax since 2016 would owe approximately INR 1,68,300 per tower by 2024.
This situation highlights the ongoing challenges between municipal authorities and telecom operators regarding tax compliance. The BBMP's efforts to streamline the tax collection process and offer incentives through the OTS scheme reflect a broader trend in local governance to improve revenue collection while encouraging compliance among businesses.
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