As per official records released, The Bruhat Bengaluru Mahangara Palike (BBMP) has been able to collect only Rs 2641 crore of its intended goal of Rs 4000 crore in property tax for this fiscal year. This discrepancy is being largely attributed to the shift in focus towards electoral duties in the recent months. The civic body however is confident of achieving its goal by early 2023 if not sooner. In the last 4 years the Palike has collected more than Rs 11,000 crore in property tax, with the highest collections being made from non-residential properties in the city.
The Bruhat Bengaluru Mahangara Palike (BBMP) has been able to collect only Rs 2641 crore of its intended goal of Rs 4000 crore in property tax for this fiscal year. This discrepancy is being largely attributed to the shift in focus towards electoral duties in the recent months. The civic body however is confident of achieving its goal by early 2023 if not sooner. In the last 4 years the Palike has collected more than Rs 11,000 crore in property tax, with the highest collections being made from non-residential properties in the city.
As per official records released by the BBMP, Rs 873 crore was collected from residential properties, Rs 1381 crores from non-residential properties, Rs 251 crore from properties / building deemed as residential + non-residential and Rs 77 crore from industrial properties. The total collections made for the 2022-23 fiscal year makes up of 66 per cent of the target of INR 4000 crore for the fiscal year.
The BBMP has recently begun to utilize databases from the Bangalore Electricity Supply Company (BESCOM), in an effort to identify defaulters, as they have records of many properties not available with the BBMP. In addition to this the civic body is looking to increase tax collection by recovery of taxes from malls and review of a percentage of self-assessment affidavits. Currently, under section 144 of the BBMP act of 2020, the civic body is authorized to seize not only movable assets, but also immovable properties and bank accounts of defaulters. Prior to this, under the rules framed under section 108(a) of the Karnataka Municipal Corporations Act of 1976, the civic body was allowed to only seize movable properties of tax defaulters. According to current projections, the BBMP is looking to collect another INR 1000 crore in property tax by the end of the fiscal year.
Property tax is the annual amount paid by a landowner to the local government or the municipal corporation of his area. The Municipality of a particular area carries the responsibility of conducting this assessment and determines the tax payable by a property owner. Property tax can be paid on an annual or semi-annual basis. This tax varies with each location, city and state. The tax amount is based on the area, construction, property size, building etc. The collected amount is mainly used for public services like repairing roads, construction schools, buildings, sanitation, etc.
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