BBMP's tax collection falls way below target

BBMP's tax collection falls way below target

With only four days left for the current financial year to end, the Bruhat Bangalore Mahanagara Palike (BBMP) has achieved just 41 per cent of its revenue collection target of Rs 8,520.56 crore.

Of the targeted revenue, the Palike could garner only Rs 3,935 crore. There was a drastic fall in the revenue from property tax, advertisement revenue and optical fibre cable (OFC).

The BBMP’s main source of revenue is the property tax. It had set a target of Rs 2,500 crore but could generate only Rs 1,310 crore. Out of the anticipated sum of Rs 500 crore from OFC, the Palike could get only Rs 85 crore so far. 

The Palike has not collected a single rupee from trade licences ever since the process was made online two months ago although the target was Rs 25 crore. The Palike got only 25 per cent of the grant from the Centre under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). 

The Palike also lags way behind in the market revenue. While it could not enhance the rental value of the shops, it also failed to collect existing meagre rent of Rs 50, Rs 100, Rs 200 and so on.

In the middle of severe financial crisis, the elections are set to hamper Palike’s revenue collection further, with all the officers and employees are engaged in election duty.

No cheque payment

In order to achieve its target of Rs 2,500 crore for the next financial year at the earliest, the BBMP has initiated several measures including doing away with collection of taxes through cheques. Instead, the Palike will only collect tax through cash and demand draft.