Bengaluru: In the wake of Chief Minister H.D. Kumaraswamy directing officials to take up austerity measures and prevent any leakages to the exchequer, the BBMP has stepped up its drive to mop up property tax collection.
The BBMP is contemplating on having a third party team to plug leakages and enhance property tax collection. BBMP Taxation and Finance Committee Chairman Mahadev told Deccan Chronicle that third party squad inspection will help in taking action against those providing false information or under-declaring their property. This will help increase property tax collection.
On a pilot basis, the squad will be deputed to Mahadevapura and Bommanhalli zones along with the BBMP officials such as tax inspectors and revenue inspectors to assess the proper dimension of the property. Mahadevapura and Bommanahalli zones are the home to many prominent IT companies and highest revenue leakage have been also reported from these areas, Mahadev said.
The third party would be equipped with proper gadgets to assess the exact area and fix the property tax payable. Based on the feedback of the pilot project, the third party squad would be extended to all the eight zones.
On a rough estimate Rs 150 crore of additional revenue can be expected from this new move, Mahadev added. A tender would be floated shortly to receive expression of interest. The BBMP will fix a particular commission. Whoever quotes less would be shortlisted to take up third party inspection. The quantum of commission will be fixed by the BBMP after discussing with the BBMP Commissioner and revenue officials, he added.
Notice to violators
Following a total station survey that the BBMP had conducted on 49 high rises in Mahadevapura and Bommanahalli zones, the BBMP has slapped notices for evading property tax.
Under Self Assessment Scheme (SAS), property owners are given free hand to declare the extent of built up area and calculate the tax based on the zone that the property falls under.
The BBMP has fixed six slabs ranging from ‘A’ to ‘F’. Properties that fall under ‘A’ category are under highest bracket while those under ‘F’ are under least bracket.
Under the SAS scheme, many property owners have under declared their built up area to evade property tax.
The BBMP has filed a caveat and slapped a notice. The civic body has provision to confiscate moveable properties if the owners fail to pay the tax.
Tax collection up
The BBMP has made a property tax collection of Rs 1,236 crore by the end of May, which is Rs 30 crore more when compared to corresponding period last year.
This year the last date to avail rebate for property tax was not extended and this has helped the BBMP to earn more tax. The BBMP aims to earn Rs 4,000 crore from property tax this year.
