BBMP has approved the one-time hike in property tax rates. The matter was placed before the BBMP council last week, but the exact hike will be decided by the State government.
The proposal was tabled before the Bruhat Bengaluru Mahanagara Palike’s (BBMP) Standing Committee for Taxation and Finance by the former Commissioner N. Manjunath Prasad as the tax rates were revised last in 2016. As per the Karnataka Municipal Corporations Act, 1976, property tax rates have to be revised every three years. The Act provides for a hike in the range of 15 to 30% every block period, which is every three years.
Sources said the BBMP administration has recommended a hike of 25% for residential properties and 30% for commercial properties. However, the BBMP council passed a resolution with regard to the hike without debating or deciding on the rate of increase. Ruling party leader Abdul Wajid said the hike rate would be decided by the State government.
Property tax is the single most important source of revenue for the civic body. However, as per the National Economic Survey 2016–17, the BBMP was collecting only about 20% of the potential property tax. Though tax collection for 2018–19 crossed the Rs 2,500-crores mark, the highest in the city’s history, it still fell short of the target of Rs 3,100 crores.
While GIS mapping has identified over 19 lakh properties, the number of property owners who paid the tax in 2018-19 was just over 12 lakh.
New Commissioner B.H. Anil Kumar stressed on the need to bring in more properties under the tax net, while saying resource mobilisation would be made a priority.
Source: The Hindu