A resolution fixing six different property tax slabs(depending on location)
BBMP building. (Photo: DC/file)
Bengaluru: Following complaints that the BBMP’s property tax collection was not satisfactory, the Commissioner M. Lakshminarayan is mulling writing to the government seeking the posting of an IAS officer to oversee property tax collection.
Replying to a query on getting an officer exclusively for better collection of taxes on Wednesday, Mr Lakshminmarayan said that a special officer would be appointed.
He, however, pointed out that property tax collection this year has gone up compared with previous years. The BBMP has already collected Rs 1,000 crore as against the target of Rs 2,500 crore. Revenue officials have been put on their toes, he added.
Yediyur corporator N. R. Ramesh pointed out that under BBMP jurisdiction there are about 3,758 companies in the information technology, bio-technology and call centre sectors and the civic body can collect a revenue of around Rs 500 crore from them. Data on these companies have been submitted to the BBMP commissioner and the same could be utilized by the special officer to crack down on erring companies. Totally the BBMP can earn Rs 4,500 crore every year from 15 lakh properties, including high value assessment structure, he added.
Mr Ramesh also wanted revision of property tax under the Self-Assessment Scheme (SAS). He pointed out that property price had gone up by at least two to three times in the last five years, but the property tax has not been revised.
That apart, as per the Corporate Social Responsibility (CSR) rules, whichever company makes a profit of over Rs 5 crore must earmark two per cent of it for the CSR activities. Bengaluru has at least 250 companies, which makes a profit of over Rs 5 crore in a year. Of the 3,758 companies in the city, over 1200 are IT and IT-related companies and 92 are bio-tech companies, Mr Ramesh added.
Paying Guest accommodations
The cash-strapped BBMP has set its eyes on generating additional revenue from the Paying Guest (PG) accommodations dotting the city, albeit from next fiscal.
Following a debate on considering the PG accommodations as non-residential units the BBMP passed a resolution fixing six different property tax slabs (based on the location) from April next year.
Although it was supposed to have implemented from the current year, the civic body could not do so as three months of this financial year have already lapsed. Mr Ramesh revealed that city has over eight thousand PG accommodations, while the BBMP’s revenue records show only 272. He said the BBMP was collecting only Rs 31.17 lakh a year from registered PG accommodations. If brought under the new tax net it can fetch Rs 60 crore.
( Source : dc correspondent )
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