Bengaluru: Govt extends property tax rebate, will it fix Rs 500 crore revenue gap?

Bengaluru: In a move expected to ease the burden on property owners, the state government has extended the 5% rebate on property tax payments until May 31, 2026. The decision will help about 25 lakh properties which come under five corporations in the Greater Bengaluru Area (GBA). 

The extension assumes significance in light of concerns raised by apartment residents including the Bangalore Apartment Federation (BAF) over confusion in the property tax payment process.

Residents had flagged ambiguity in certain categories, particularly relating to bulk waste generators, which had led to delays and uncertainty in compliance.

A senior official of the Greater Bengaluru Authority (GBA) confirmed that the State government has approved the extension following their request. “The government has agreed to extend the rebate period by a month’s time,” the official said.

What’s more, it comes as a relief to many residents who were anticipating an extension, particularly as the payment window coincides with other major household expenses such as school fees.

Officials, however, indicated that overall revenue collection has taken a hit this year. According to a senior GBA official, the civic body is currently facing a shortfall of around Rs 500 crore despite fixing the ambiguities on April 16. “We had collected about Rs 1,500 crore last year; this year, it is lower,” the official said.

Civic officials are hopeful that the additional time will encourage property owners to pay their taxes while helping the corporations to bridge part of the revenue gap.