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Bengaluru: BBMP collects INR 4,284 crore in property tax with 88% via digital payments

#Taxation & Finance News#India#Karnataka#Bangalore
PNT Reporter | Last Updated : 6th Dec, 2024
Synopsis

The BBMP reported a property tax collection of INR 4,284 crore between April and November 2024, with INR 700 crore recovered from arrears. Nearly 88% of the total was collected via online payments, indicating the growing popularity of digital transactions. Mahadevapura was the highest contributor, while Dasarahalli recorded the lowest. Special Commissioner Munish Moudgil credited enhanced tax systems and outreach efforts for the achievement but acknowledged challenges, including arrears of INR 400-450 crore and inefficiencies in low-performing zones. BBMP aims to reach INR 5,200 crore in property tax collections by March 2025.

The Bruhat Bengaluru Mahanagara Palike (BBMP) has made significant progress in property tax collection, amassing INR 4,284 crore between 1 April and 30 November 2024. This impressive figure includes approximately INR 700 crore recovered from arrears. A striking highlight of the collection process was the overwhelming reliance on digital payments, with INR 3,762.8 crore, or nearly 88% of the total, being paid through online platforms. Offline payments accounted for INR 521.3 crore, underscoring a shift towards digital transactions among Bengaluru's taxpayers.


Munish Moudgil, BBMP's special commissioner for revenue, attributed this success to the adoption of efficient tax administration practices, upgrades to digital payment systems, and proactive measures to recover arrears and revise taxes. He observed that the preference for online payments reflected growing trust in and accessibility of digital platforms, making tax payment more convenient for citizens. The extensive reliance on online payments has positioned BBMP as a model for leveraging digital innovation in urban governance.

An analysis of zone-wise contributions revealed Mahadevapura as the top contributor, with an impressive INR 1,148 crore. This was followed by the east zone, which contributed INR 710 crore, and Bommanahalli, which added INR 419 crore to the civic body's coffers. In stark contrast, Dasarahalli emerged as the lowest-performing zone, registering a modest INR 136.2 crore in collections. The disparity raised concerns about potential inefficiencies or a limited taxpayer base in the region.

To address such challenges, Moudgil highlighted the importance of targeted outreach campaigns in zones like Dasarahalli to improve compliance and promote digital payment adoption. He reiterated BBMP's commitment to maintaining transparency and prioritising citizen convenience, acknowledging that while significant progress has been made, there is still substantial room for improvement.

Despite the achievements, BBMP faces several hurdles, including the recovery of pending arrears worth INR 400-450 crore and addressing systemic issues in zones with lower contributions. Moudgil expressed confidence in BBMP's ability to meet its ambitious target of INR 5,200 crore in property tax collections by March 2025, reflecting the civic body's ongoing commitment to improving revenue collection processes and supporting the city's development needs.

The consistent focus on digitalisation, outreach, and efficient tax administration underscores BBMP's forward-looking approach to governance, laying a robust foundation for meeting its fiscal targets and enhancing services for Bengaluru's citizens.

BBMP's remarkable property tax collection of INR 4,284 crore highlights the effectiveness of its enhanced digital platforms and streamlined tax administration. While the success of online payments underscores citizens' growing trust in digital systems, disparities in contributions across zones, such as Dasarahalli, suggest the need for targeted improvements. The civic body's focus on transparency, compliance, and citizen convenience remains pivotal as it strives to recover outstanding arrears and achieve its collection target of INR 5,200 crore by March 2025.

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