The BBMP has proposed a one-time settlement scheme to end a prolonged property tax dispute with state-owned, central government-owned, and Public Sector Undertakings (PSUs).
While these entities can clear pending arrears by paying lower interest rates, the scheme’s approval by the state cabinet could earn BBMP Rs 200 crore in property tax arrears.
Some of the departments that owe BBMP: KPCL (Rs 20 crore), KPTCL (Rs 58 lakh), Bescom (Rs 18 lakh), BMTC (Rs 35 crore), GKVK campus (Rs 15 crore), Income Tax (Rs 2.9 crore), HAL (Rs 57 crore), HMT (Rs 2.54 crore), Railways (Rs 25 crore), etc.
Officials said the scheme plans to keep the base property tax payment as the same while computing the interest on the total tax payable on RBI bank rates.
BBMP sources said Chief Minister Basavaraj Bommai and the finance departments have cleared the proposal.
“The scheme was introduced on the request of these establishments,” a senior official said.
The one time settlement scheme will be applicable for six months from the date of issue of the government order.
As per the BBMP Act, government properties are expected to pay 25% of the property tax as service charge even as they are exempted from regular property tax slabs fixed for other buildings.
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