Gram panchayats mop up Rs 1,382 c in taxes

Bengaluru: The gram panchayats (GPs) in the state have ended the 2025-26 fiscal with a record tax collection of Rs 1,382.57 crore, the government said on Thursday. 

Rural Development Minister Priyank Kharge said the state has 5,943 gram panchayats whose total tax demand rose to Rs 1,560.77 crore in the fiscal year that ended March 31.

"The department reported total tax collections of Rs 1,382.57 crore in 2025–26, marking an increase of Rs 110.04 crore over Rs 1,272.54 crore collected in 2024–25. This represents a record 89% realisation of the current demand, the highest in recent years," Priyank said. 

"Every rupee collected is being reinvested into village infrastructure, public services, and local development,” the minister said. 

In 2024–25, gram panchayats had, for the first time in the department’s history, collected Rs 1,272.54 crore, achieving 80% of the current demand.

"Karnataka had previously secured the top position at the national level in tax collection and revenue mobilisation, and the continued upward trend highlights the impact of efficient administration, strict enforcement of regulations, and strengthened tax collection mechanisms," Priyank said. 

"This achievement has been driven by extensive awareness campaigns, targeted tax collection drives and the sustained efforts of officials at all levels—from gram panchayat bill collectors to senior administrators," he added. 

The Raichur district recorded an "exceptional" 129% tax collection, while 11 districts across the state achieved over 100% collection, demonstrating strong local-level execution and compliance, Priyank said.