Record property tax revenues but still way short of target

The BBMP's property tax revenues in 2021-22 have surpassed the all-time high but the eventual figures would still be considerably lower than the target.

As of March 26, the Bruhat Bengaluru Mahanagara Palike (BBMP) mopped up Rs 2,950 crore in property tax and hopes to breach the Rs 3,000 crore mark in the final days of the current financial year, about 5% more than last year's figures. However, this would be far lower than the Rs 4,000-crore target the BBMP had hoped to collect in property tax payments in 2021-22.

The original target was Rs 3,500 crore but the BBMP revised it upwards as it needed funds for projects added to the budget days after it was presented.

Property tax revenues were Rs 2,828 crore in 2020-21 and Rs 2,746 crore in 2019-20.

Also Read — Property tax collection in Bengaluru lower than that in Mysuru and Dakshina Kannada, government data shows

The decent property tax revenue in 2021-22 comes despite businesses across Bengaluru being hit by two Covid-19 waves during the outgoing fiscal year.

Sources said the BBMP’s revenue wing was confident of crossing the Rs 3,000-crore mark in the next five days, saying many property owners pay in the final days. It's also planning to hold a meeting with the hoteliers' association to coax hotel owners into paying property tax. Many hotel owners have delayed property tax payments in the hope of getting a waiver from the government because their business suffered due to the pandemic.

Although property tax is one of the primary sources of revenue for the civic body, it hasn't been able to introduce measures to increase the tax net. Elected representatives believe that at least five lakh properties in BBMP limits are still outside the property tax bracket.

A senior BBMP official believes a property tax collection of Rs 3,500 crore is "very much achievable". “We are bringing in some reforms. We held no less than 20 khata melas in apartment complexes in the last two months. There is also a plan to link databases of different agencies to check properties that are outside the tax purview,” the official explained.

Srikanth Viswanathan, who heads the nonprofit Janaagraha Centre for Citizenship and Democracy, congratulated the BBMP for the record property tax collection but suggested institutional reforms to improve the system. The civic body, he said, hasn't done enough to study the database of the stamps and registration department, the BWSSB and Bescom that have more properties in BBMP limits than the ones under the tax net.

Watch the latest DH Videos here: