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BBMP collects just Rs 463 crore property tax through OTS

The BBMP’s initiative to boost revenue through the ‘One Time Settlement’ (OTS) aimed at recovering unpaid taxes has received a tepid response. As the deadline of July 31 approaches, the civic authority has managed to collect Rs 463.03 crore, leaving Rs 624.88 crore still outstanding.

According to the data, BBMP officials have successfully collected Rs 73.9 crore in the Bommanahalli zone, with Rs 82.77 crore still outstanding. In the Dasarahalli zone, BBMP has gathered Rs 16.37 crore while awaiting Rs 22.21 crore. Moving to the East zone, BBMP has accumulated Rs 70.57 crore and is awaiting Rs 87.14 crore. In the Mahadevapura zone, BBMP has managed to collect Rs 109.37 crore and still has to collect Rs 140.04 crore.

For RR Nagar, the collection stands at Rs 33.78 crore, with Rs 49.74 crore yet to be collected. In the South zone, BBMP has received Rs 71.94 crore and awaits Rs 96.63 crore. In the West zone, Rs 50.83 crore has been collected, leaving Rs 97.18 crore outstanding. Lastly, in Yelahanka, BBMP has collected Rs 36.27 crore and awaits Rs 49.16 crore.

An official said, “Despite the launch of the OTS on February 27 aimed at easing property tax burdens by waiving 50 pc of penalties and interest, many property owners with overdue tax payments have not participated.

As of now, only Rs 463 crore has been collected, significantly below the anticipated Rs 1000 crore. Out of the 5.51 lakh property tax defaulters in the city, merely 1.52 lakh have settled their dues under the scheme, leaving 3.24 lakh defaulters yet to take advantage of the opportunity. The BBMP had hoped for substantial tax revenue through this initiative but has faced a lacklustre response from taxpayers.”

Despite the BBMP issuing notices to 3.95 lakh property owners for overdue property tax payments, only 70,000 have settled their dues. The majority of property owners have not responded to the notices. Furthermore, between 5 to 7 lakh properties are yet to be brought under the tax net.

“While some property owners have participated in the scheme, a significant number have not responded to the notices. The BBMP had anticipated a substantial increase in tax revenue through this scheme, but the response from property owners has been tepid,” added another official.

When contacted, BBMP Chief Commissioner Tushar Giri Nath, stated, “It is time to act now and take benefit of OTS. We are encouraging citizens to utilise the scheme before July 31. Following a review meeting at the BBMP head office on Monday, we have found that approximately 4 lakh property owners are eligible for the scheme, with 80,000 having already taken advantage by settling their dues.

The remaining 3.20 lakh property owners have until July 31 to avail themselves of the scheme and clear their pending taxes. For any queries regarding the OTS, including payment details and locations, you can dial the toll-free helpline at 1533 to receive the necessary assistance.”

Meanwhile, apart from OTS, the property tax collection is also yet to pick up. Between April and June last year, the BBMP collected Rs 2,287 crore in property taxes, whereas this year, up until July 7, only Rs 1,758 crore has been collected.

This marks a decrease of Rs 528 crore from the previous year’s collections. The implementation of the One Time Settlement (OTS) scheme is attributed to this decline. As of July 7, the collection figures stand at Rs 139.22 crore in Yelahanka zone, Rs 398.79 crore in Mahadevapura, Rs 60.37 crore in Bommanahalli, Rs 125.95 crore in RR Nagar, Rs 203.85 crore in South zone, Rs 211.54 crore in East zone and Rs 294.21 crore in Dasarahalli zone.

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