BBMP's 5-year high tax collection is just 68% of its own target

Although Bruhat Bengaluru Mahanagara Palike (BBMP) has recorded the highest collection of property tax in the last five years, there is no cause to celebrate.

Because it has consecutively failed to reach its own annual collection targets.

BBMP has collected Rs 1,756.47 crore until now, which is 68% of the estimate for this financial year. The Palike had set for itself a target of Rs 2,600 crore property tax in revenues in this year.

M K Gunashekar, chairman of Tax and Finance standing committee said, "There are leakages in the collection of property tax and we are not receiving tax according to estimates."

There are 343 high rise buildings in eight zones which have underestimated the value of their properties. This came to light through a 'total station survey' of these establishments are in Whitefield, Hoodi, Marathahalli and Byatarayanapura zones.

With an approval from BBMP Commissioner N Manjunath Prasad, the tax and finance standing committee will form a special team headed by former chief secretary B S Patil to improve collections. This team will look into recovering property taxes from these high rises to prevent leakage.

"Those properties which have either underestimated the value of the property tax and have not paid will be penalised," said Gunashekar.

He also said that a tender has been awarded for smart parking in 85 roads of the central business district of the city. The tender has been awarded for a tenure of 10 years and for an amount of Rs 340 crore.