<p>Civic authorities like Bengaluru Development Authority (BDA) and Bruhat Bengaluru Mahanagara Palike (BBMP) seem to derive some sadistic pleasure out of subjecting citizens, who are already under financial distress due to Covid-19, to further hardship. BDA’s recent decision to impose a maintenance fee on plot owners without first providing basic amenities for which it has already collected development charges, had led to an outrage. To make matters worse, heavy fines were imposed on allottees who were unable to construct houses within the stipulated three-year period mainly because BDA had failed to provide facilities like drinking water, underground drainage and street lights, not to mention the travails caused by the pandemic. Now, the BBMP has administered another shock to Bengalureans by asking them to pay property tax arrears along with interest and penalty, which in some cases works out to over 200% of the tax amount. The amount ranges from a few thousand rupees to a couple of lakhs. Ironically, most owners who have been served notices have been paying their taxes diligently every year. </p>.<p>The genesis of the issue goes back to 2016-17 when BBMP reclassified zones, with the tax structure revised upwards in some areas. But this was not communicated to individual property owners. As the relevant portal too was not updated, it calculated the property tax based on the existing zone and owners made the payment according to old rates. Had the software been updated in 2016, people would have paid taxes according to the new rates or raised objections at that stage itself. The culpability lies entirely with BBMP and to now demand that owners pay the difference amount for four years, along with interest and a hefty penalty, is arbitrary and unfair. That the notices have come at a time when many are suffering from job cuts, reduction in salary and loss of rental incomes, speaks volumes for the bureaucratic insensitivity. Instead of applying the soothing balm in times like these, BBMP officers have donned the role of Shylock to add to the misery of the people when many property owners had in fact sought a moratorium on payment of taxes considering the prevailing situation.</p>.<p>The government should meanwhile clear the confusion over the subsistence of the 2016 notification on zonal reclassification as some resident welfare associations claim it has been withdrawn and as such the notices are illegal. Nonetheless, there is no justification for punishing the people for no fault of theirs by recovering taxes retrospectively. The government should, in the meanwhile, direct BBMP to withdraw the notices immediately and revise taxes prospectively, if need be, in consultation with all stakeholders.</p>
<p>Civic authorities like Bengaluru Development Authority (BDA) and Bruhat Bengaluru Mahanagara Palike (BBMP) seem to derive some sadistic pleasure out of subjecting citizens, who are already under financial distress due to Covid-19, to further hardship. BDA’s recent decision to impose a maintenance fee on plot owners without first providing basic amenities for which it has already collected development charges, had led to an outrage. To make matters worse, heavy fines were imposed on allottees who were unable to construct houses within the stipulated three-year period mainly because BDA had failed to provide facilities like drinking water, underground drainage and street lights, not to mention the travails caused by the pandemic. Now, the BBMP has administered another shock to Bengalureans by asking them to pay property tax arrears along with interest and penalty, which in some cases works out to over 200% of the tax amount. The amount ranges from a few thousand rupees to a couple of lakhs. Ironically, most owners who have been served notices have been paying their taxes diligently every year. </p>.<p>The genesis of the issue goes back to 2016-17 when BBMP reclassified zones, with the tax structure revised upwards in some areas. But this was not communicated to individual property owners. As the relevant portal too was not updated, it calculated the property tax based on the existing zone and owners made the payment according to old rates. Had the software been updated in 2016, people would have paid taxes according to the new rates or raised objections at that stage itself. The culpability lies entirely with BBMP and to now demand that owners pay the difference amount for four years, along with interest and a hefty penalty, is arbitrary and unfair. That the notices have come at a time when many are suffering from job cuts, reduction in salary and loss of rental incomes, speaks volumes for the bureaucratic insensitivity. Instead of applying the soothing balm in times like these, BBMP officers have donned the role of Shylock to add to the misery of the people when many property owners had in fact sought a moratorium on payment of taxes considering the prevailing situation.</p>.<p>The government should meanwhile clear the confusion over the subsistence of the 2016 notification on zonal reclassification as some resident welfare associations claim it has been withdrawn and as such the notices are illegal. Nonetheless, there is no justification for punishing the people for no fault of theirs by recovering taxes retrospectively. The government should, in the meanwhile, direct BBMP to withdraw the notices immediately and revise taxes prospectively, if need be, in consultation with all stakeholders.</p>
