BBMP Struggles To Recover Rs 200 Cr Of Property Tax Dues

The municipal corporation in Bengaluru could be richer by Rs 200 crore if it is able to collect property tax dues from 59 property holders. Anticipating a deficit in the revenue collection obtained through property taxes, the Bruhat Bengaluru Mahanagara Palike (BBMP) conducted a survey of these properties to identify cases of under-declaration during the self-assessment scheme (SAS). It was found out that these establishments owned the municipal body Rs 809.44 while they have paid it only Rs 601.26 crore. The remaining amount of over Rs 200 crore is yet to be collected by the civic authority.

While commercial establishments are major defaulters, the issue of under-declaration prevails even in the residential sector. The absence of a systemic cross-verification process has been a major factor for rising cases of under-declaration. The taxes are to be collected across various zones of Bommanahalli, East, Mahadevapura, South, West and Yelahanka. The dues once secured would improve the revenues for the civic body.

Now, teams have been formed for executing and managing the survey as well as for collecting the dues from the defaulters. The success, however, has been dismal.

Demand notices were sent to 45 parties for recovering the dues while 21 property owners had appealed against the tax demand. According to the rules, dues should be collected within 30 days after the issue of demand notice.