Record property tax collection by Palike

Rs 830 cr collected within first 3 months of the fiscal

For the first time in eight years, the Bruhat Bangalore Mahanagara Palike (BBMP) has collected a whopping Rs 830 crore property tax within the first three months of a financial year, largely due to the five-percent rebate announced by the Congress government.

Buoyed by the landslide victory in the Assembly elections in May, Chief Minister Siddaramaiah announced that the five-percent discount would be extended till the end of June. Usually, the discount is offered only in April — the beginning of new financial year — so that the BBMP can implement its budgetary provisions.

The bonanza by the Congress prompted more property owners to pay the tax, supporting the Palike’s ailing finances. The BBMP collected Rs 563 crore until May 31 but property owners rushed to pay the tax in June to avail of the discount. Thus, the Palike laughed all the way to the bank with Rs 267 crore property tax collected in June.

“It was possible because of the extension in the period of discount. Such a revenue collection never happened before,” the BBMP Deputy Commissioner (Revenue), I Ramakanth, said.

In 2012, Ramakanth added, only Rs 670 crore could be collected by July 1. This year, however, nine lakh property owners, have paid tax. There are 13 lakh properties in the tax net.

Daunting task

The encouraging collection notwithstanding, the BBMP has a daunting task ahead. It has to collect Rs 1,800 crore property tax in the current financial year.

Last year, the Palike could collect only Rs 1,358 crore, largely because of its drum-beating drive before the offices of major tax defaulters.

As per Palike records, there are 14,14,450 properties in the tax net — an increase of 59,765 in the last one year.

A source in the Palike said that the Geo Information System (GIS) based property mapping shows about 16.8 lakh properties in the City.