Guest column: BBMP should have tackled the issue of resource mobilisation instead

The rationale given for the steep 20 per cent hike in property tax is that the city has grown exponentially and the BBMP is starved of funds to carry out the developmental work needed.

But instead of taking the easy way out by revising property tax, the BBMP should have tackled the larger issue of resource mobilisation, which is more complex. The fact that BBMP is allowed to revise the taxes once in five years does not give it an automatic right to do so and hide its inefficiency. It only means it does not have the license to revise the taxes more than once in five years.

For one, it could mop up more revenue by determining the exact number of properties liable to pay tax in Bengaluru and put up the details on its website, while ensuring its constant updation. The use of technology and sharing of information with other service providers like BESCOM and BWSSB could help too.Its estimated that there are nearly 27 lakh properties in Bengaluru, but only 15 lakh actually pay taxes.

Secondly, it should establish a mechanism to track the properties under construction and the alterations being made to already existing buildings. It should also take measures to see that residential properties which are later converted into commercial, partly or fully, are taxed accordingly.

Once these steps are effectively implemented the tax collection will go up far more than the expected incremental revenue of Rs 600 crore through the present hike.
(The writer is founder president, Citizens’ Action Forum)