Major payers of property tax cock a snook at Palike

The onus of paying property tax to the Bruhat Bangalore Mahanagara Palike seems to be only on the middle class as a large number of major taxpayers have not paid their taxes.

While introducing the Geographical Information System (GIS)-based Property Identification Number (PID), the BBMP authorities had claimed that they had identified at least 16 lakh taxable properties and they would bring all the properties in the tax net. The PID certainly helped increase the tax revenue from Rs 850 crore in 2009-10 to about Rs 1,210 crore, but habitual tax defaulters cocked a snook at the Palike.

The BBMP, this year, expects to generate at least Rs 1,800 crore, but the pace of tax payment so far, does not seem to be encouraging.

By the end of November, the Palike could mop up only Rs 1,066 crore.

Most of the tax has come from the middle class and a few major taxpayers, while many big fish continued defaulting on payment of property tax this year too.

The Palike recently made the names of the major taxpayers public, but to no avail.

According to Palike sources, at least Rs 1,000 crore could have come from the bigwigs, but they seem to have chosen to dodge the BBMP as usual, using their political clout. Among the major defaulters are owners of malls, industries, corporate offices, many corporate hospitals and commercial buildings.

The sources said the major taxpayers, who defaulted for many years, were served notices following the registration of their properties under the PID. The tax assessment for major buildings by BBMP revenue officers showed that they owed crores of rupees. But the taxpayers challenged the assessment before the appeals committee of the Palike and also in court.

A top BBMP officer said, “Neither has the appeals committee considered early hearing of the case nor has the legal section thought of fighting it out in the court. As a result, the matter is pending for almost two years.”